Top Stock to Buy #4 – Canadian National Railway (CNI)
Canadian National Railway (CNI), Canada’s largest railroad, links customers in Canada, the U.S. and Mexico. S&P recently raised its price target from $115 to $125 based on accelerating volume growth. Earnings estimates were increased, as well, and S&P now expects $6.20 in 2013 and $7 in 2014.
On Oct. 24, the company reported Q3 earnings of $1.82 per share versus a consensus estimate of $1.68. It also announced its plans to repurchase up to 15 million shares.
The stock broke from a quadruple-top on high volume in October. The breakout resulted in a spike to $111.95. The angle of advance is so sharp that the current price will be difficult to maintain, so a buy under at $107 is recommended with a price target of $125.