Canadian National Railway (CNI) — Canada’s largest railroad links customers in Canada, the U.S. and Mexico, and has direct lines from the Alberta oil sands to the Gulf Coast refineries.
S&P recently raised its 12-month price target to $68 from $63 based on “a favorable view of volume and pricing trends.” S&P said it considers CNI to be “the most efficiently run of the major North American railroads.”
The company completed a 2-for-1 common stock split in the form of a stock dividend of one additional common share of CNI for each share outstanding on Nov. 29. Its board approved plans to buy back approximately 4% of the common shares not held by insiders. Consensus earnings estimates are for $3.48 per share in 2014 and $3.92 in 2015.
On Monday, the stock broke from a cup-and-handle formation with a trading target of $65. MACD is in a strong bullish position. Buy CNI at the market price.