(CNR) Canadian National Railway - Ratings and Ratios

Canadian National Railway Company is a transportation behemoth operating in Canada and the US, providing a comprehensive suite of rail, intermodal, and trucking services. With a century-old legacy since its incorporation in 1919, CNR has established itself as a stalwart in the industry, serving a diverse range of sectors including automotive, coal, fertilizers, and consumer goods. The companys extensive service portfolio encompasses equipment provision, custom brokerage, transloading, and distribution, as well as specialized services like flatbed trucks and expedited cargo. CNRs strategic presence in both Canada and the US enables it to capitalize on cross-border trade opportunities.

From a technical analysis perspective, CNRs stock price is currently trading near its 20-day Simple Moving Average (SMA) of 144.40, indicating a potential consolidation phase. The 50-day SMA at 140.23 is trending upwards, suggesting a longer-term bullish undercurrent. However, the stock is still below its 200-day SMA of 147.64, indicating that it has not yet regained its long-term uptrend momentum. With an Average True Range (ATR) of 2.70, representing 1.87% of the current price, CNRs stock is experiencing moderate volatility. Given the current technical setup, a breakout above the 52-week high of 169.73 could signal a new uptrend, while a drop below the 52-week low of 132.07 would indicate a significant downturn.

Fundamentally, CNRs market capitalization stands at approximately 91.1 billion CAD, with a price-to-earnings (P/E) ratio of 20.34 and a forward P/E of 18.66. The companys return on equity (RoE) is a respectable 22.11%, indicating a strong ability to generate profits from shareholder equity. Considering the current fundamental data and technical indicators, a forecast for CNRs stock price could be constructed. Assuming the company maintains its current RoE and the industry continues to grow, a potential price target could be estimated. If CNRs earnings grow in line with its historical averages and the P/E ratio remains stable, the stock price could potentially reach 160-170 CAD in the next 12-18 months, representing a 10-15% upside from current levels.

Combining both technical and fundamental insights, a potential trading strategy for CNR could involve monitoring the stocks price action around the 144-145 CAD level, with a breakout above 150 CAD potentially signaling a new uptrend. Conversely, a drop below 140 CAD could indicate a correction, warranting a re-evaluation of the investment thesis. By closely tracking CNRs technical and fundamental developments, investors can refine their investment decisions and adjust their strategies accordingly.