Canadian National (CNI) came out with quarterly earnings of $1.29 per share, beating the Zacks Consensus Estimate of $1.26 per share. This compares to earnings of $1.28 per share a year ago.
Get a deeper insight into the potential performance of CN (CNI) for the quarter ended March 2025 by going beyond Wall Street's top -and-bottom-line estimates and examining the estimates for some of its key metrics.
CN (CNI) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
The current high level of uncertainty makes predicting individual company performance on a micro-economic level unrealistic. Instead of sharing an in-depth piece on one long idea, I am sharing a basket of longs I have recently bought during this market decline. Technical Analysis has led me to put cash to work back in the market.
Rail network issues due to headwinds like locomotive and labor shortages represent a major challenge for Canadian National.
Here, we pick three railroad stocks, Union Pacific, Canadian National and Norfolk Southern, which have a solid five-year dividend growth history.
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Canadian National Railway has a strong moat with extensive rail networks in North America, ensuring stable gross profit margins. Despite a slight overvaluation, CNI's resilient business model and risk management make it a compelling choice for long-term investors. CNI's steady revenue and net income growth, along with strong margins, underpin its sustainable dividend and share buyback strategies.
High debt, rising operating expenses and supply-chain disruptions represent major tailwinds at CNI.
In recent weeks, the broader market has veered toward a correction. The S&P 500 is down roughly 10% from its high, and the technology-heavy Nasdaq Composite has dropped approximately 14% from its peak.
Canadian National Railway shares are trading 20% below their all-time high, with a 2.48% dividend yield, making them attractive for dividend growth investors. Despite temporary issues like weak quarterly figures and US-Canada trade tensions, long-term growth prospects remain strong, but short-term downside risks persist. The stock lacks a margin of safety at its current valuation, with an adjusted P/E ratio of 20.3, making it overvalued given its modest growth.