CNI stock: buy or sell?

CNI stock price: $89.90 -2.11% At close on August 23rd, 2019

Updated on:
August 23rd, 2019

3

Canadian National Railway fell a rough -2.11% and closed at $89.90.

Canadian National Railway Company engages in rail and related transportation business. The company transports cargo serving exporters, importers, retailers, farmers, and manufacturers.

Should I buy CNI stock?

Make a decision about when to buy or sell stocks is one of the hardest parts of being a trader or investor. Following a trading strategy helps to make decisions easier, quicker and with less hesitations. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best.

None of our preferred buy setups matches with Canadian National Railway stock situation right now, therefore this is not a suitable entry point.

Buy setupElegible
New all-time highNo
New 52 week highNo
Price crossing up 200d MANo
100d MA crossing up 200d MANo
This doesn't mean CNI will slide in coming sessions, or it will not rise higher. Simply, it doesn't match our recommended trading systems.

Is Canadian National Railway stock a buy?

Banks and financial institutions post stock ratings everyday. At Stocks2.com, we collected 8 ratings published for CNI stock in the last month.

The general sentiment of these ratings is bullish for CNI stock, with 4 positive ratings.
Is CNI a good stock to buy?
DateAnalyst / BrokerPrevious ratingCurrent rating
2019-7-24Credit Suisse Groupn/aOutperform
2019-7-10Goldman Sachs Groupn/aNeutral
2019-4-4CitigroupBuyBuy
2019-4-30Royal Bank of CanadaOutperformSector Perform
2019-1-30MacquarieOutperformNeutral
2019-1-3StephensEqual WeightOverweight
2019-1-17Barclaysn/aHold
2019-1-15Credit Suisse GroupNeutralOutperform

CNI stock analysis

Daily outlook

Canadian National Railway ended today at $89.90 and fell a rough -2.11%.

Canadian National Railway shares fell -2.11% to $89.90 today. Since last May when SMA100d and SMA200d crossed up, CNI price slipped $-1.97 per share (-2.14%). On July/29, CNI hit a new all time high, pushing higher than on July/16 tops. Check different trading setups that use ATHs as triggers.

CNI stock chart (daily)

Weekly outlook

Canadian National Railway shares slipped -2.79% this week, ending at $89.90.

Not so far away is the last price record Canadian National Railway marked late July. Since early May when SMA20w and SMA40w crossed up, CNI price slipped $-2.89 per share (-3.11%). By mid February CNI price bounced up over the SMA of 40 weeks that acted as support stopping new slides.

CNI stock chart (weekly)

CNI stock price history

CNI IPO was on November 26th, 1996 at $0.80 per share1. Since then, CNI stock grew a 11,137.50%, with a yearly average of 506.30%. If you had invested right after CNI's IPO a $1,000 in CNI stock in 1996, it would worth $111,375.00 today.

1: Adjusted price after possible price splits or reverse-splits.

CNI stock historical price chart

CNI stock reached all-time highs on Jul 29th with a price of $96.49.

CNI stock price target is $97.00

How much a stock will be priced tomorrow or next week is quite unpredictable However, banks and other financial institutions analysts, with the help of lots of data and algorithms do their best to predict the stock prices movement. You should not follow the analysts' CNI stock price predictions in the hope that they will be met as they may be wrong and not met. For the last month we found 4 price targets for CNI stock:
CNI stock price predictions
DateAnalyst / BrokerActionPrevious targetCurrent targetDiff
2019-7-24Credit Suisse GroupRaises Target$101.00$104.003%
2019-4-4CitigroupRaises Target$87.00$103.0018.4%
2019-1-17BarclaysReiteratesn/a$86.00-
2019-1-15Credit Suisse GroupUpgrades$90.00$95.005.6%
(in average)$92.70$97.005.0%
The price prediction for Canadian National Railway stock is $97.00, moving in a range between $104.00 and $86.00. In average, analysts' outlook on CNI price forecast is positive, improving the forecast by a 5.00% from previous estimations.

Financials and fundamental analysis

Earnings date and Earnings per Share

Since January, when Canadian National Railway presented its last earnings report, it . Unfortunately, reported EPS is not yet available in our database.
CNI earnings date and EPS evolution
QuarterReporting dateEstimated EPSActual EPSSurprise
2017-Q2-n/a1.36n/a
2017-Q3-n/a1.27n/a
2017-Q4-n/a3.48n/a
2018-Q12018-04-230.80.79-1.3%
2018-Q22018-07-241.051.1711.4%
2018-Q32018-10-231.121.152.7%
2018-Q42019-01-291.111.131.8%
2019-Q1-n/an/an/a
2019-Q2-n/an/an/a
2019-Q3-n/an/an/a

Annual financial results

Compared to 2017, last anual revenues report draw a phenomenal gain of 9.82% to $14,321.00 million USD. When comparing 2018 vs 2017, instead, profit margin (that is, the net income divided by revenues) plummed a -11.83% to 30.22%.

CNI annual Sales and Income evolution
YearSalesYoYIncome/(margin)YoY
2013$10,580 M-$2,610 M24.7%-
2014$10,442 M-1.31%$2,725 M26.1%4.42%
2015$12,611 M20.78%$3,538 M28.1%29.82%
2016$12,037 M-4.55%$3,640 M30.2%2.88%
2017$13,041 M8.34%$5,484 M42.1%50.66%
2018$14,321 M9.82%$4,328 M30.2%-21.08%

Quarterly financial results

Canadian National Railway reported $3,808.00 M in revenues for 2018-Q4, a 3.25% improvement compared to previous quarter. Reported quarter income marked $1,143.00 million with a profit margin of 30.02%. Profit margin remained steady a -0.73% compared to previous quarter when profit margin was 30.75%. When comparing sales to same quarter last year, Canadian National Railway sales marked an extraordinary increase and skyrocketed a 45.78%. Looking back to recent quarterly results, Canadian National Railway posted 4 positive quarters in a row.
CNI quarterly Sales and Income evolution
QuarterSales1QoQ2Income1/(margin)QoQ2
2017-Q2$3,330 M-$1,030 M30.9%-
2017-Q3$3,220 M-3.30%$958 M29.8%-6.99%
2017-Q4$2,612 M-18.88%$2,076 M79.5%116.72%
2018-Q1$3,194 M22.28%$741 M23.2%-64.31%
2018-Q2$3,631 M13.68%$1,310 M36.1%76.79%
2018-Q3$3,688 M1.57%$1,134 M30.7%-13.44%
2018-Q4$3,808 M3.25%$1,143 M30.0%0.79%
2019-Q1$3,544 M-6.93%$786 M22.2%-31.23%

Canadian National Railway ownership

When you are planning to invest in shares of a stock, it's always worth to have a look its ownership structure.

Canadian National Railway shares owned by insiders (that is, founders, CEO, CTO, main executives or other management staff) currently counts a 3.04% of all shares.

In case of Canadian National Railway stock, 0.00% of its shares are held by institutions (mutual funds, pension funds, big banks and other large financial institutions). Bearish positions for CNI stock account 0.00%, no big difference from last month.

The following table compares ownership indicators for other stocks related to Canadian National Railway:

CNICPCSXGWRKSU
Market cap$65.4 B$33.9 B$53.5 B$6.3 B$12.4 B
Total shares727.3 M144.9 M809.2 M56.5 M100.6 M
Float shares616.5 M128.7 M796.9 M55.5 M99.3 M
  - Institutional holdings (%)0.0%75.4%78.7%98.0%85.4%
  - Insider holdings (%)3.0%0.0%0.2%1.9%0.5%
Shares in short selling0.0%0.0%0.0%0.0%0.0%

CNI summary

Friday, August 23rd, 2019
Open$91.81
Close$89.90
Day range$89.54 - $92.08
Previous close$91.84
Session gain-2.11%
Average true range$1.79
50d mov avg$92.87
100d mov avg$92.16
200d mov avg$87.02
Daily patternlt01b
Weekly pattern

Canadian National Railway performance

To measure stock performance is always good to compare with competitors or related stocks. In the following table, we compare Canadian National Railway performance to Canadian Pacific Railway, CSX, Genesee & Wyoming, , Norfolk Souther and Union Pacific:
Stock3m6m12m
CNICanadian National...-1.15%6.11%4.63%
CPCanadian Pacific ...4.96%13.12%16.09%
CSX -11.41%-9.19%-10.28%
GWRGenesee & Wyoming17.12%31.71%25.58%
KSU2.26%11.34%9.77%
NSCNorfolk Souther-14.62%-6.78%-1.31%
UNPUnion Pacific-6.57%-4.92%8.85%

Canadian National Railway competitors

We selected a few stocks to conform a list of Canadian National Railway competitors to examine if you are interested in investing in CNI:

Latest CNI stock news