Canadian National Railway's Strong Performance Boosts Stock

Published 16 hours agoCNI

Canadian National Railway's Strong Performance Boosts Stock

Canadian National Railway Co. (CNR) has recently reported a strong financial performance that has positively affected its stock price. The company surpassed analysts' expectations in its latest earnings report, contributing to the rise in its shares, according to Reuters.

Despite potential economic challenges, CNR is holding firm on its financial outlook for 2025. Impressively, it forecasts a low single-digit percentage growth in adjusted earnings per share (EPS) for 2024, with a notable compounded annual growth rate in the high single digits over the 2024-2026 period. Additionally, CNR projects a return on invested capital between 13% and 15% for 2024. In terms of capital expenditures, the company plans to allocate approximately $3.4 billion in 2025, remaining consistent with its investment level for 2024.

The railway company is also committed to returning value to its shareholders. It has increased its quarterly dividend by 5%, marking the 29th consecutive year of hikes in dividend payouts, as noted by Fool.ca. Reflecting confidence in the company's future, a consensus of 12 Wall Street analysts recommend buying CNR stock, targeting a mean price of $173.00 CAD, which implies a potential upside of around 13.28%.

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