Canadian stock alert

CANA

CLOSING UPDATE: Canadian National Railway dropped 2.4%, led market lower 26 July 2017 18:22 EDT

NEWS BITES - NORTH AMERICA

This is an end of day Alert, produced after today's Canadian market close. It concludes the BSS News Bites intra-day Alert series (summaries below).

Canadian National Railway, Canada's largest transportation & logistics company by market capitalisation, has dropped 2.4% to trade at CAD99.0 vs. the S&P/TSX 60 Index which weakened 3.4 points (or 0.4%) to 892.4. Representing a weighting of about 4.8% of the index, the stock accounted for 30.3% of today's loss. The shares have underperformed 83% of the market in the past week. Trading volume was 1.5 times average at the end of the day. Compared with the S&P/TSX 60 Index which fell 3.4 points (or 0.4%) in the day, this represented a relative price change of -2.0%.

Technical indicators complementing today's significant downtrend:

+ The negative 1.08 MACD (Moving Average Convergence Divergence) indicator suggests a bearish signal.

+ The price sank 4.8% in the last week and tumbled 7.5% in the last month.

Fundamental measures by comparison with the sector average [in brackets] indicate:

Overvaluation:

+ Price/Sales of 6.1 [5.0]

+ Year-on-Year Earnings Growth of 6.4% [7.1%]

Other Bearish Signals include:

+ Tobin's Q Ratio is 2. Compared with the rest of the market the stock is overvalued.

Note

Canadian National Railway today is at a discount of 8.9% to the 12-month high of CAD108.64 on 19 Jun, 2017. It is at a premium of 23.6% to the 12-month low of CAD80.11 on 04 Aug, 2016.

Bullish Signals:

In the last three months the stock has hit a new 52-week high seventeen times, pointing to a significant uptrend.

Interest cover is less leveraged at 11.3 times.

Total Liabilities/EBITDA of 3.3 is comfortably below the Joseph Piotroski benchmark of <5.

Net profit margin has averaged 28.1% in the last 3 years. This is considered superior and suggests a high margin of safety.

As per the Du Pont analysis, Return on Equity is high at 24.5%. Also, this has improved from 23.7% last year.

Fundamental measures by comparison with the sector average [in brackets] indicate:

Undervaluation:

Price/Earnings/Growth of 1.36 [2.8]

Return on Assets 9.8% [8.4%]

Return on Capital Employed 15.9% [13.4%]

TODAY'S ALERT

Afternoon Alert: Canadian National Railway drops 2.1%, leads Transportation & logistics sector lower

26 July 2017 12:20 EDT

Canadian National Railway Company (TSX:CNR) has dropped 2.1% to trade at CAD99.33 vs. the Transportation & logistics sector which weakened 42.4 points (or 1.4%) to 3,082.6. Representing a weighting of about 68.6% of the sector, the stock accounted for the loss. The shares have underperformed 93% of the market in the past week. Trading volume was 1.5 times average so far today.

RECENT ALERTS

CLOSING UPDATE: Canadian National Railway decreased 0.2%, led Transportation & logistics sector lower

25 July 2017 18:22 EDT

Canadian National Railway, Canada's largest transportation & logistics company by market capitalisation, has decreased 0.2% to trade at CAD101.45 vs. the Transportation & logistics sector which weakened 18.8 points (or 0.6%) to 3,125.0. Representing a weighting of about 69.1% of the sector, the stock accounted for 20.4% of today's loss. Trading volume was 73% of average at the end of the day. Compared with the S&P/TSX 60 Index which rose 3.8 points (or 0.4%) in the day, this represented a relative price change of -0.6%.

Afternoon Alert: Canadian National Railway in 10th consecutive fall, nears three-month low

25 July 2017 14:49 EDT

Canadian National Railway Company (TSX:CNR) slipped further on Tuesday, sliding an additional 24.0c (or 0.2%) to trade at CAD101.39. The stock decreased 0.35% on Friday and 1.2% on Monday bringing its 10-day fall to 5.0%. It is now approaching its 61-day low of CAD101.19.

Canadian National Railway Company (T:CNR; TSE:CNR; N:CNR; CN:CNR)

ISIN: CA1363751027

PermID: 4295860595

CIK: Canadian National Railway Company

Source: www.BuySellSignals.com