It’s Full Steam Ahead for This Railroad Stock

Canadian National Railway is recommended under $107 with a price target of $125

   
It’s Full Steam Ahead for This Railroad Stock

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.

In late October, the company reported Q3 earnings of $1.82 per share versus a consensus estimate of $1.68. It also announced plans to repurchase up to 15 million shares, a 2-for-1 stock split and a fourth-quarter 2013 cash dividend to be paid on Nov. 29 to stockholders of record on Nov. 15.

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. CNI was included in our list of Top 6 Stocks to Buy for November.

11 13 buy cni 300x198 It's Full Steam Ahead for This Railroad Stock
Click to Enlarge

chart key 300x84 It's Full Steam Ahead for This Railroad Stock


Article printed from InvestorPlace Media, http://investorplace.com/2013/11/trade-day-canadian-national-railway-cni/.

©2014 InvestorPlace Media, LLC

Comments are currently unavailable. Please check back soon.