On May 26, 2023, CN (TSX:CNR) (NYSE:CNI) announced that they have successfully reached a collective agreement with the Teamsters Canada Rail Conference (TCRC). The agreement specifically covers around 6,000 CN Locomotive Engineers, Conductors, Yard Conductors, and Yard Coordinators who are currently working in Canada. However, the deal still needs to be ratified by the affected employees.
It is worth noting that the TCRC has already ratified a new 3-year collective agreement with CN in 2021. On December 23, 2022, the TCRC members have also ratified the new agreement. Additionally, rail traffic controllers in Canada have also given their approval to the agreement.
Tracy Robinson, President and Chief Executive Officer of CN, expressed her gratitude towards the TCRC leadership for their active involvement throughout the negotiation process. Robinson also emphasized CN’s commitment to collaborating with the TCRC to ensure that customers continue to receive excellent service and that team members enjoy improved working conditions.
Positive Performance of CNI Stock with Projected Earnings Growth in Transportation and Railroads Industry
On May 26, 2023, CNI stock opened at $114.16, up from the previous close of $113.71. The day’s range was between $113.75 and $115.44, with a volume of 821,792 shares traded. The market cap for CNI was $80.6B.
CNI had a positive earnings growth of 4.00% last year and 6.10% this year. The projected earnings growth for the next five years is 6.29%. The revenue growth for last year was 13.80%. The P/E ratio for CNI was 19.6, while the price/sales ratio was 6.22 and the price/book ratio was 5.08.
CNI’s next reporting date is on July 26, 2023, with an EPS forecast of $1.97 for this quarter. The net profit margin for CNI was 29.92%.
CNI operates in the transportation sector and the railroads industry. The corporate headquarters for CNI is located in Montreal, Quebec.
Overall, CNI had a positive performance for the day, with an increase in the stock price and positive earnings growth. The projected earnings growth for the next five years is also positive, which could potentially lead to further growth for the company.
Canadian National Railway Co (CNI) Stock Analysis: Strong Long-Term Growth Prospects and Potential Impact of Kansas City Southern Acquisition
On May 26, 2023, Canadian National Railway Co (CNI) had a median target price of 130.87, according to data from CNN Money. This represented a +14.71% increase from the last price of 114.09. The 23 analysts offering 12-month price forecasts had a high estimate of 139.31 and a low estimate of 114.91.
The current consensus among 33 polled investment analysts was to hold stock in CNI. This rating had remained steady since May, when it was unchanged from a hold rating.
CNI’s current quarter earnings per share were $1.97, with sales of $4.3B. The reporting date for these figures was July 26, 2023.
CNI is a transportation and logistics company that operates a network of railways in Canada and the United States. The company provides freight transportation services, including intermodal, trucking, and supply chain solutions.
CNI’s stock performance has been relatively stable over the past year, with the stock price fluctuating between $100 and $120. However, the company has faced some challenges, including labor disputes and disruptions caused by the COVID-19 pandemic.
Despite these challenges, CNI has continued to invest in its infrastructure and expand its operations. The company recently announced plans to acquire Kansas City Southern, a move that would create a North American rail network connecting Canada, the United States, and Mexico.
This acquisition could have a significant impact on CNI’s stock performance, as it would position the company as a major player in the North American rail industry. However, the acquisition is still subject to regulatory approval, and there is no guarantee that it will be completed.
Overall, CNI’s stock performance on May 26, 2023, was in line with market expectations. While the company has faced some challenges, its long-term growth prospects remain strong, and the acquisition of Kansas City Southern could be a major catalyst for future growth. Investors should continue to monitor CNI’s stock performance and watch for updates on the acquisition.
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