Canadian National Railway Co (CNR:CA)
Canadian National Railway Co (CNR:CA), a leader in the rail, intermodal, trucking, and marine transportation sector in Canada and the United States, remains a key player in the logistics and transportation industry.
Investors are looking forward to Canadian National Railway Co’s quarterly earnings report, scheduled for January 21, 2025. This will provide further insights into its operational performance amid current market challenges.
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Recent Performance and Market Conditions:
CNR’s stock price recently closed at CAD 148.18, showing a positive change of +1.16% over the past week but a decline of -5.17% over the past month. Over the last year, the stock is down -11.92%, reflecting challenges within the broader economic and market conditions.
Rising interest rates and macroeconomic uncertainty have weighed on the performance of railroad companies. Nevertheless, Canadian National Railway’s 5-year revenue growth of 17.51% and earnings growth of 29.97% reflect its resilience and long-term growth trajectory.
Stock Target Advisor’s Analysis on Canadian National Railway Co:
According to Stock Target Advisor’s analysis, Canadian National Railway Co has a Bullish outlook based on 7 positive signals and 2 negative signals. Key positives include its superior return on equity (27.55%) and return on assets (8.18%), outperforming its sector peers.
Additionally, the stock is considered underpriced compared to earnings, with a price-to-earnings ratio of 17.22. However, concerns arise from its high leverage (debt-to-equity ratio of 80.2%) and elevated price-to-book ratio of 4.7.
The average analyst target price for CNR is CAD 168.2, with a projected 12-month price change of 13.11%. Notable analysts’ ratings include Sanford C. Bernstein & Co. lowering its target from CAD 179 to CAD 173, UBS setting a target of CAD 190, and STA Research maintaining a “Hold” rating with a target of CAD 155.
Out of 22 analysts covering the stock, 13 have a “Buy” rating, while 1 has a “Sell” rating. The stock’s performance has been stable relative to peers, showing low volatility (Beta: 0.65).
Conclusion:
Canadian National Railway Co remains a cornerstone in North America’s transportation sector, offering stability and growth opportunities for investors.
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While near-term challenges persist due to macroeconomic factors, its robust operational metrics and analyst confidence suggest a positive long-term outlook. The upcoming earnings report will be a crucial factor in shaping investor sentiment and stock performance.
Muzzammil is a content writer at Stock Target Advisor. He has been writing stock news and analysis at Stock Target Advisor since 2023 and has worked in the financial domain in various roles since 2020. He has previously worked on an equity research firm that analyzed companies listed on the stock markets in the U.S. and Canada and performed fundamental and qualitative analyses of management strength, business strategy, and product/services forecast as indicated by major brokers covering the stock.
