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.