Stock of the Day

Canadian National Railway (CNI)

$105.39

-$0.18 (-0.2%)

Market Cap: $66.22B

About Canadian National Railway

Canadian National Railway Company, together with its subsidiaries, engages in the rail, intermodal, trucking, and marine transportation and logistics business in Canada and the United States. The company provides rail services, which include equipment, custom brokerage services, transloading and distribution, business development and real estate, and private car storage services; and intermodal services, such as temperature controlled cargo, port partnerships, and logistics parks.

It offers trucking services, such as door-to-door services, import and export dray, interline services, and specialized services, comprising flatbed trucks, on-deck mobile transport trays, expedited cargo, and permit/overweight services; and supply chain services. It serves automotive, coal, fertilizers, temperature controlled cargo, forest products, dimensional, grain, metal and minerals, petroleum and chemicals, consumer goods, and third party logistics applications. The company operates a rail network of approximately 20,000 route-miles of track and shipping spanning. Canadian National Railway Company was incorporated in 1919 and is headquartered in Montreal, Canada.

Canadian National Railway Bull Case

Here are some ways that investors could benefit from investing in Canadian National Railway:

• The current stock price is around $105, which is relatively stable compared to its 52-week high of $127.89, indicating potential for growth.
• Canadian National Railway reported a strong net margin of over 26%, suggesting efficient management and profitability, which can lead to higher returns for investors.
• The company has a solid return on equity of 22.48%, indicating effective use of shareholders' equity to generate profits, making it an attractive investment.
• Recent earnings exceeded analysts' expectations, with earnings per share of $1.29, showcasing the company's ability to perform well even in challenging market conditions.
• With a market cap of approximately $66 billion, Canadian National Railway is a significant player in the transportation sector, providing stability and potential for long-term growth.

Canadian National Railway Bear Case

Investors should be bearish about investing in Canadian National Railway for these reasons:

• The company’s revenue for the latest quarter was below analyst expectations, which could indicate potential challenges in meeting future growth targets.
• Canadian National Railway has a debt-to-equity ratio of 0.94, which, while manageable, suggests that the company is using a significant amount of debt to finance its operations, potentially increasing financial risk.
• Recent downgrades from analysts, including a reduction in price targets, may reflect concerns about the company's future performance and could impact investor confidence.
• The stock has seen fluctuations in trading volume, with recent volumes lower than the average, which may indicate reduced investor interest or liquidity issues.
• With a P/E ratio of around 20.58, the stock may be considered overvalued compared to industry peers, which could deter value-focused investors.

Recent News

• Canadian National Railway Company (CNI) to Spend $80 Million in Atlantic Canada to Boost Capacity and Support Sustainable Growth (insidermonkey.com)
• CN Launches C$1 Billion Debt Offering for Strategic Growth (tipranks.com)
• CN Announces C$1 Billion Debt Offering (globenewswire.com)
• Canadian National Railway (CNI) Receives Outperform Rating from RBC Capital | CNI Stock News (gurufocus.com)
• RBC Capital Reiterates Outperform Rating for Canadian National Railway (CNR) | CNR Stock News (gurufocus.com)
• CN to Invest $80 Million in Atlantic Canada to Build Capacity and Power Sustainable Growth (globenewswire.com)
• UBS maintains buy rating for Canadian National Railway stock (investing.com)
• Via Rail CEO blames plummeting on-time performance on CN speed rules (financialpost.com)
• Ghislain Houle, Executive Vice-President and Chief Financial Officer, to address Wells Fargo 2025 Industrials and Materials Conference (globenewswire.com)