Canadian National Railway Company (CNI) shares are trading at lower $104.98 and the avg recommendation for the stock is Moderate Buy, while the current analyst price target stands at $107.19.
To add more color to this target, the company’s high over the last year is $112.97 and the low is $65.13. Over the last 52 weeks, CNI is up 16.87% while the S&P 500 is up 14.62%. The catalyst for this interesting swing was the company’s recent earnings report.
A Notable Earnings Report
In the last quarter, CNI reported a profit of $1.99 billion. Canadian National Railway Company also saw revenues increase to $2.56 billion. In addition, CNI has free cash flow of $1.61 billion as of 09-2020. The company’s EBITDA came in at $1.34 billion which compares well with its peers.
CNI booked profit margins of 25.60%, its Return on Equity (ROE) is 19.50%, and its Return on Assets is 8.10%. All told, it is clear that, CNI needs to be on your watchlist.
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Of course, we must look beyond the financials and question how well those numbers represent the sustainable earnings power of the business. Investors need to know how sustainable this current run. CNI has a short ratio of 3.81 and outstanding shares of 710.70M.
CNI has seen increased volume after this news and investors are putting their support behind the value proposition. Furthermore, 10-day volume stands at 0.62 million and more growth is possible in the weeks ahead. Traders will also note the company’s earnings per share came in at 3.68. Canadian National Railway Company CNI also noted assets of $33.9 billion at the end of the last quarter. Investors should also keep an eye on sector updates as CNI has historically followed its peers on positive news.
All told, Canadian National Railway Company CNI has strung together solid data and demonstrated underlying fundamentals. At its current valuation, CNI represents an interesting risk/reward case. Traders should stay tuned to see if this recent report will push the stock to test recent resistance levels.
Canadian National Railway Company CNI is now commanding a market cap of 74.26B and a float of 708.74M. CNI is increasing its credibility in this sector and that could lead to more upside down the line. Sign-up for continuing coverage on shares of CNI stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!
Disclosure: we hold no position in CNI, either long or short, and we have not been compensated for this article.