If you're holding Canadian National Railway (NYSE: CNI) in your portfolio, it might be a good moment to reassess your stance. The company, a key player in the Industrials sector, boasts a solid profit margin of 26.09% and generated $17B in total revenue, with $4.4B in net income from continuing operations. However, the net interest income shows a loss of $891M, which could be a point of concern. With a forward dividend rate of $2.48, it remains an attractive option for income-focused investors. Analysts have mixed views, with 9 strong buys and 15 holds, suggesting some uncertainty about future performance. The stock's potential upside is modest at 2.71%, and the lowest estimated target price is $104.05. Given these factors, it's wise to weigh the risks and potential rewards carefully before making any decisions. Canadian National Railway is set to release its earnings today. Despite some baby boomers showing little interest in the ground transportation sector, it's worth taking a closer look at Canadian National as a potential investment. We'll explore why investors might still find value in holding a stake in this company, especially in light of the current economic climate.
What is the right price you would pay to acquire a share of Canadian National? For most investors, it would be the price that gives them a wide margin of safety to have minimal downside risk. In other words, most investors are always looking for undervalued stocks. Even if the
future performance is not entirely as expected, the loss of holding it is minimized, and the downside risk is negated. Please read more on our
stock advisor page.
What is happening with Canadian National Railway this year
Annual and quarterly reports issued by Canadian National Railway are formal
financial statements that are published yearly and quarterly and sent to Canadian stockholders. The reports show and break down the current year's ongoing operations and discuss plans for the upcoming year. Annual reports have been a requirement from the
Securities and Exchange Commission (SEC) for businesses owned by the public since 1934.
Companies such as Canadian National often view their annual report as an effective marketing tool to disseminate their perspective on company
future earnings or innovations. With this in mind, many companies devote large sums of money to making their reports attractive and informative. In such instances, the annual report becomes a forum through which a company can communicate to the general public any number of topics that may or may not be directly related to the actual data published in the reports.
Canadian National Gross Profit
Canadian National Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Canadian National previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Canadian National Gross Profit growth over the last 10 years. Please check Canadian National's
gross profit and other
fundamental indicators for more details.
Is Canadian a risky opportunity?
Let's check the volatility. Canadian is looking slightly risky at this time. Whether you invest your money or manage your clients' funds, remember that it is easy to forget that behind Canadian (USA Stocks:CNI) stock is an actual business venture. So, do not let stock picking become an abstract concept by ignoring the elementary risk calculations. purchasing a share of a Canadian National stock makes you a part-owner of that company.
Canadian National Railway Current Consensus
Here is the recent trade recommendation based on an ongoing consensus estimate among financial analysis covering Canadian National Railway. The Canadian consensus assessment is calculated by taking the average estimates from all of the analysts covering Canadian National.
| Strong Buy | 9 | 27.27 |
| Buy | 7 | 21.21 |
| Hold | 15 | 45.45 |
| Sell | 1 | 3.03 |
| Strong Sell | 1 | 3.03 |
Timing is everything in the stock market, and Canadian National Railway (NYSE: CNI) might be worth a closer look. With a current ratio of 1.01, the company maintains a solid liquidity position, suggesting it can comfortably meet its short-term obligations. Despite a modest five-year return of 1.67%, the stock's beta of 0.83 indicates lower volatility compared to the broader market, which could appeal to risk-averse investors. However, with a price-to-earnings ratio of 31.36X, the stock appears to be trading at a premium, potentially limiting immediate upside. Investors should weigh these factors carefully to determine if CNI aligns with their portfolio goals.
Will Canadian plunge impact its fundamentals?
Canadian National Railway recently saw a notable increase of over 3.19, sparking curiosity about its effect on the company's core fundamentals. While such shifts might raise eyebrows, it's crucial to remember that Canadian National's strengths, like its vast rail network and efficient operations, remain solid. Investors should determine if this change is due to short-term market conditions or hints at a more significant trend. Monitoring upcoming earnings and management's strategies will be key to understanding whether these changes are superficial or suggest deeper financial shifts.
Despite low volatility, with a skewness of 0.41 and kurtosis of 2.33, market trends can influence timing decisions. In bear markets, increased volatility can affect stock prices, prompting investors to adjust their portfolios as values dip.Considering Canadian National Railway's current dip of 1%, it's important to weigh the broader context of its market performance and analyst insights. With an overall consensus rating of "Buy" and a highest estimated target price of $126.92, the stock presents a compelling opportunity for investors looking for long-term growth. The valuation real value stands at $105.69, suggesting potential upside from its current market value of $95.62. With
15 analysts recommending a hold and
9 advocating for a strong buy, the stock's fundamentals appear solid, making it a worthy consideration for those seeking stability and growth in their portfolio..
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Vlad Skutelnik is a Macroaxis Contributor. Vlad covers stocks, funds, cryptocurrencies, and ETFs that are traded in North America, focusing primarily on fundamentals, valuation and market volatility. He has many years of experience in fintech, predictive investment analytics, and risk management.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Vlad Skutelnik do not own shares of Canadian National Railway. Please refer to our
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