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 0.1%. By the end of trading, Canadian National Railway rose $1.39 (1.4%) to $102.66 on average volume. Throughout the day, 714,162 shares of Canadian National Railway exchanged hands as compared to its average daily volume of 702,700 shares. The stock ranged in a price between $101.57-$102.84 after having opened the day at $101.66 as compared to the previous trading day's close of $101.27. Other companies within the Transportation industry that increased today were: Globus Maritime ( GLBS), up 9.0%, Quality Distribution ( QLTY), up 7.2%, PHI Incorporated Non Voting ( PHIIK), up 7.0% and Rand Logistics ( RLOG), up 6.8%.
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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 $43.6 billion and is part of the services sector. The company has a P/E ratio of 18.4, above the S&P 500 P/E ratio of 17.7. Shares are up 11.3% year to date as of the close of trading on Friday. Currently there are 3 analysts that rate Canadian National Railway a buy, 2 analysts rate it a sell, and 15 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, good cash flow from operations, largely solid financial position with reasonable debt levels by most measures, solid stock price performance and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

On the negative front, Paragon Shipping ( PRGN), down 7.1%, Euroseas ( ESEA), down 5.0%, Gol Intelligent Airlines ( GOL), down 4.7% and Danaos Corporation ( DAC), down 4.6% , were all laggards within the transportation industry with Delta Air Lines ( DAL) being today's transportation industry laggard.

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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