Topic: How To Invest

The Successful Investor Hotline – Friday, January 27, 2023

Article Excerpt

CANADIAN NATIONAL RAILWAY CO., $157.51, Toronto symbol CNR, remains a buy. CN operates Canada’s largest railway. Its 29,900-kilometre network stretches across the country. It also travels down through the U.S. Midwest, connecting Canada to the Gulf of Mexico. The company’s revenue in the fourth quarter of 2022 rose 21.0%, to $4.54 billion from $3.75 billion a year earlier. That beat the consensus forecast of $4.48 billion. The increase is due to higher fuel surcharges and freight rates. CN also benefitted from rising Canadian grain shipments and a weaker Canadian dollar, which increased the contribution from its U.S. operations. Earnings before one-time items in the quarter gained 17.3%, to $1.42 billion from $1.21 billion. The company spent $1.07 billion on share buybacks in the quarter, so earnings per share rose at a faster rate of 22.8%, to $2.10 from $1.71. That also topped the consensus estimate of $2.08. CN’s operating ratio in the quarter was unchanged at 57.9%. (Operating ratio is a key measure of a..