The year 2025 is just getting started, and investors have as much pressure as ever to get their portfolios set in the right direction, as a few winners in the first half of the year can not only give investors confidence but also plenty of liquidity and room to then pursue the more aggressive deals in the market during the second half of the year. This is why having a mix of steady income through dividend stocks that are also cheap enough to offer upside becomes critical.
High debt, rise in operating expenses, and supply-chain disruptions represent major tailwinds for CNI.
Canadian National Railway's stock dip presents a long-term buying opportunity, despite a 19% drop in New York due to currency risks and tariff concerns. Railroads, including CNI, are capital-intensive but can yield strong returns through efficiency, fuel-efficiency, and cash returns via buybacks and dividends. Canadian National's Q3 showed mixed results with a slight EPS beat and revenue growth, but challenges in intermodal and automotive sectors impacted performance.
Unifor said on Sunday that its members at Canadian National Railway have ratified a new four-year collective agreement, averting a potential strike action.
I have upgraded Canadian National Railway to a Buy based on its attractive valuation and total yield potential. The company boasts a unique rail network spanning three coasts, has demonstrated strong operational efficiency, and has optimistic growth prospects tied to targeted infrastructure investments. For income- and defensive-minded investors, it offers the highest 5-year dividend CAGR, longest growth streak, and most competitive forward yield among peers, making it an attractive buy-and-hold option.
Shareholder-friendly initiatives bode well for the Zacks Transportation-Railroad industry. CP, CNI and NSC are well-poised to capitalize on the bullishness.
CNI is benefiting from robust tech-savvy initiatives that boost safety at work. The economic downturn and elevated expenses are hurting the company's prospects.
CN (CNI) reported earnings 30 days ago. What's next for the stock?
Here we pick three railroad stocks, Union Pacific (UNP), Canadian National (CNI) and Norfolk Southern (NSC), which have a solid five-year dividend growth history.
I downgrade Canadian National Railway Co. from buy to hold due to concerns about missing FY24 EPS guidance amid weak volume growth. Third-quarter earnings were mixed: revenue grew 3.1% y/y, but EBIT fell slightly, and recurring net income dropped, despite a 1.8% increase in adj EPS. Operational improvements in network health and fluidity are notable, but the near-term volume growth outlook remains uncertain, impacting confidence in meeting FY24 targets.
Labor uncertainties and a softer macroeconomic environment impact CNI's third-quarter performance.
Canadian National Railway Company (NYSE:CNI ) Q3 2024 Earnings Conference Call October 22, 2024 4:30 PM ET Company Participants Stacy Alderson - Assistant Vice President, Investor Relations Tracy Robinson - President and Chief Executive Officer Derek Taylor - Executive Vice President and Chief Field Operations Officer Patrick Whitehead - Executive Vice President and Chief Network Operating Officer Remi Lalonde - Executive Vice President and Chief Commercial Officer Ghislain Houle - Executive Vice President and Chief Financial Officer Conference Call Participants Kenneth Hoexter - Bank of America Fadi Chamoun - BMO Capital Markets Christian Wetherbee - Wells Fargo Cherilyn Radbourne - TD Cowen Scott Group - Wolfe Research Walter Spracklin - RBC Capital Markets Brandon Oglenski - Barclays Steven Hansen - Raymond James Ravi Shanker - Morgan Stanley Konark Gupta - Scotiabank Brian Ossenbeck - JPMorgan David Vernon - Bernstein Benoit Poirier - Desjardins Jonathan Chappell - Evercore ISI Stephanie Moore - Jefferies Daniel Imbro - Stephens Inc Thomas Wadewitz - UBS Benjamin Nolan - Stifel Operator Good afternoon. My name is Sarah and I will be your operator today.