Canadian National Railway Co (CNI): Today's Featured Transportation Winner

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

Canadian National Railway ( CNI) pushed the Transportation industry higher today making it today's featured transportation winner. The industry as a whole closed the day up 0.7%. By the end of trading, Canadian National Railway rose $1.09 (1.3%) to $86.08 on light volume. Throughout the day, 313,586 shares of Canadian National Railway exchanged hands as compared to its average daily volume of 530,800 shares. The stock ranged in a price between $84.85-$86.12 after having opened the day at $84.97 as compared to the previous trading day's close of $84.99. Other companies within the Transportation industry that increased today were: FreeSeas ( FREE), up 8.3%, GasLog ( GLOG), up 7.9%, Knightsbridge Tankers ( VLCCF), up 7.2%, and Vitran Corporation ( VTNC), up 6.6%.
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Canadian National Railway Company, together with its subsidiaries, engages in rail and related transportation business in North America. Canadian National Railway has a market cap of $36.91 billion and is part of the services sector. The company has a P/E ratio of 13.9, below the S&P 500 P/E ratio of 17.7. Shares are up 8.9% year to date as of the close of trading on Tuesday. Currently there are four analysts that rate Canadian National Railway a buy, three analysts rate it a sell, and 16 rate it a hold.

TheStreet Ratings rates Canadian National Railway as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, notable return on equity, good cash flow from operations and growth in earnings per share. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the transportation industry could consider iShares Dow Jones Transportation ( IYT) while those bearish on the transportation industry could consider ProShares UltraShort Industrials ( SIJ).

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