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 lower today making it today's featured Transportation laggard. The industry as a whole closed the day down 0.6%. By the end of trading, Canadian National Railway fell $1.40 (-1.4%) to $98.14 on average volume. Throughout the day, 664,117 shares of Canadian National Railway exchanged hands as compared to its average daily volume of 715,400 shares. The stock ranged in price between $98.09-$100.00 after having opened the day at $99.69 as compared to the previous trading day's close of $99.54. Other companies within the Transportation industry that declined today were:
FreeSeas (
FREE), down 13.1%,
Newlead Holdings (
NEWL), down 6.7%,
China Southern Airlines Company (
ZNH), down 5.5% and
TOP Ships (
TOPS), down 5.3%.
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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 $41.4 billion and is part of the services sector. The company has a P/E ratio of 17.6, below the S&P 500 P/E ratio of 17.7. Shares are up 9.4% year to date as of the close of trading on Thursday. Currently there are 3 analysts that rate Canadian National Railway a buy, 1 analyst rates 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, good cash flow from operations, largely solid financial position with reasonable debt levels by most measures, increase in stock price during the past year and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income.
On the positive front,
International Shipholding Corporation (
ISH), down 6.2%,
Grupo Aeroportuario del Sureste S.A.B. de (
ASR), down 4.0%,
Frontline (
FRO), down 3.9% and
Vitran Corporation (
VTNC), down 3.4%.
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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