Canadian National Railway Company (CNI - Free Report) continues to benefit from solid freight demand and shareholder-friendly moves.
Against this backdrop, let’s look at the factors that make this stock an attractive pick.
What Makes Canadian National an Attractive Pick?
An Outperformer: A glimpse at the company’s price trend reveals that the stock has had an impressive run on the bourse over the past year. Shares of Canadian National have gained 9% over the past three months, outperforming the 4.9% rise of the industry it belongs to.
Solid Zacks Rank: Canadian National has a Zacks Rank #2 (Buy). Our research shows that stocks with a Zacks Rank #1 (Strong Buy) or #2 offer the best investment opportunities. Thus, the company is a compelling investment proposition at the moment. You can see the complete list of today’s Zacks #1 Rank stocks here.
Northward Estimate Revisions:The direction of estimate revisions serves as an important pointer when it comes to the price of a stock. Over the past 90 days, the Zacks Consensus Estimate for Canadian National’s third-quarter 2022 earnings has moved up 0.7% year over year to $1.56. For 2022 and 2023, the company’s earnings have increased 6.4% and 4.2% year over year, respectively.
Positive Earnings Surprise History: Canadian National has an impressive earnings surprise history. The company delivered an earnings surprise of 6.7% in the last four quarters, on average.
Earnings Expectations: Earnings growth and stock price gains often indicate a company’s prospects. For third-quarter 2022, Canadian National’s earnings are expected to register 27.3% growth. For 2022 and 2023, the company’s earnings are expected to grow at 22.2% and 10.2%, year over year, respectively. The company has a long-term earnings growth rate of 11.4%.
Growth Factors:Canadian National's efforts to reward its shareholders via dividends and share buybacks are encouraging and highlight the company's financial strength. In the first half of 2022, the company generated a free cash flow of C$1,568 million compared with C$1,280 million in the year-ago period. Management expects to generate a free cash flow of approximately C$3.7-C$4 billion in 2022. Strong freight demand and a solid pricing environment are driving Canadian National’s growth. Higher freight revenues at Petroleum and Chemicals; Metals and minerals; Coal, Intermodal; and Automotive segments boosted the company’s top line in the second quarter. Anticipating strong freight market conditions to continue, Canadian National expects adjusted earnings to increase 15-20% year over year in 2022.
Other Stocks to Consider
Some other top-ranked stocks from the broader Zacks Transportation sector are GATX Corporation (GATX - Free Report) , Triton International Limited and Teekay Tankers Ltd. (TNK - Free Report) , each currently carrying a Zacks Rank #2.
GATX Corporation has an expected earnings growth rate of 17.8% for the current year. GATX delivered a trailing four-quarter earnings surprise of 28.9%, on average.
The Zacks Consensus Estimate for GATX’s current-year earnings has improved 2.1% over the past 90 days. Shares of GATX have gained 12.3% over the past year.
Triton has an expected earnings growth rate of 22.4% for the current year. TRTN delivered a trailing four-quarter earnings surprise of 7.5%, on average. The company has a long-term expected growth rate of 10%.
The Zacks Consensus Estimate for TRTN’s current-year earnings has improved 4.2% over the past 90 days. Shares of TRTN have increased 22.2% over the past year.
Teekay Tankers has an expected earnings growth rate of 140.1% for the current year. TNK delivered a trailing four-quarter earnings surprise of 46.1%, on average. Teekay Tankers has a long-term expected growth rate of 3%.
The Zacks Consensus Estimate for TNK’s current-year earnings has improved more than 100% over the past 90 days. Shares of TNK have soared 142% over the past year.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Canadian National Railway Company (CNI - Free Report) continues to benefit from solid freight demand and shareholder-friendly moves.
Against this backdrop, let’s look at the factors that make this stock an attractive pick.
What Makes Canadian National an Attractive Pick?
An Outperformer: A glimpse at the company’s price trend reveals that the stock has had an impressive run on the bourse over the past year. Shares of Canadian National have gained 9% over the past three months, outperforming the 4.9% rise of the industry it belongs to.
Solid Zacks Rank: Canadian National has a Zacks Rank #2 (Buy). Our research shows that stocks with a Zacks Rank #1 (Strong Buy) or #2 offer the best investment opportunities. Thus, the company is a compelling investment proposition at the moment. You can see the complete list of today’s Zacks #1 Rank stocks here.
Northward Estimate Revisions:The direction of estimate revisions serves as an important pointer when it comes to the price of a stock. Over the past 90 days, the Zacks Consensus Estimate for Canadian National’s third-quarter 2022 earnings has moved up 0.7% year over year to $1.56. For 2022 and 2023, the company’s earnings have increased 6.4% and 4.2% year over year, respectively.
Positive Earnings Surprise History: Canadian National has an impressive earnings surprise history. The company delivered an earnings surprise of 6.7% in the last four quarters, on average.
Earnings Expectations: Earnings growth and stock price gains often indicate a company’s prospects. For third-quarter 2022, Canadian National’s earnings are expected to register 27.3% growth. For 2022 and 2023, the company’s earnings are expected to grow at 22.2% and 10.2%, year over year, respectively. The company has a long-term earnings growth rate of 11.4%.
Growth Factors:Canadian National's efforts to reward its shareholders via dividends and share buybacks are encouraging and highlight the company's financial strength. In the first half of 2022, the company generated a free cash flow of C$1,568 million compared with C$1,280 million in the year-ago period. Management expects to generate a free cash flow of approximately C$3.7-C$4 billion in 2022. Strong freight demand and a solid pricing environment are driving Canadian National’s growth. Higher freight revenues at Petroleum and Chemicals; Metals and minerals; Coal, Intermodal; and Automotive segments boosted the company’s top line in the second quarter. Anticipating strong freight market conditions to continue, Canadian National expects adjusted earnings to increase 15-20% year over year in 2022.
Other Stocks to Consider
Some other top-ranked stocks from the broader Zacks Transportation sector are GATX Corporation (GATX - Free Report) , Triton International Limited and Teekay Tankers Ltd. (TNK - Free Report) , each currently carrying a Zacks Rank #2.
GATX Corporation has an expected earnings growth rate of 17.8% for the current year. GATX delivered a trailing four-quarter earnings surprise of 28.9%, on average.
The Zacks Consensus Estimate for GATX’s current-year earnings has improved 2.1% over the past 90 days. Shares of GATX have gained 12.3% over the past year.
Triton has an expected earnings growth rate of 22.4% for the current year. TRTN delivered a trailing four-quarter earnings surprise of 7.5%, on average. The company has a long-term expected growth rate of 10%.
The Zacks Consensus Estimate for TRTN’s current-year earnings has improved 4.2% over the past 90 days. Shares of TRTN have increased 22.2% over the past year.
Teekay Tankers has an expected earnings growth rate of 140.1% for the current year. TNK delivered a trailing four-quarter earnings surprise of 46.1%, on average. Teekay Tankers has a long-term expected growth rate of 3%.
The Zacks Consensus Estimate for TNK’s current-year earnings has improved more than 100% over the past 90 days. Shares of TNK have soared 142% over the past year.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Get the latest research report on CNI - FREE
Get the latest research report on TNK - FREE
Get the latest research report on GATX - FREE