|Bid||69.34 x 800|
|Ask||69.35 x 900|
|Day's range||69.16 - 69.92|
|52-week range||48.43 - 76.24|
|Beta (3Y monthly)||1.46|
|PE ratio (TTM)||9.25|
|Earnings date||14 Jan 2019 - 18 Jan 2019|
|Forward dividend & yield||0.88 (1.26%)|
|1y target est||81.78|
C.H. Robinson's (CHRW) shareholder-friendly initiatives are very encouraging. High operating expenses and debts, however, raise concerns.
Norfolk Southern (NSC) reported 0.3% YoY growth in its rail traffic volume in week 48. The company pulled 153,072 railcars compared to 152,584 units in the same week last year. The YoY growth was mainly driven by the strong performance in Norfolk Southern’s intermodal business, which more than offset the weakness in the Carload segment.
Raj Subramaniam is set to assume the role of new CEO and president of the Express division in FedEx (FDX), effective Jan 1, 2019, following retirement of David L. Cunningham on Dec 31, 2018.
Canadian National Railway (CNI) reported 1.4% YoY total traffic volume growth in week 48. It moved 118,828 carloads compared to 117,201 units in week 48 of 2017. It ranked fourth in terms of week 46 traffic volume growth among all class I railroads. Union Pacific (UNP) was the highest gainer in the week with a YoY increase of 5.2% in total rail traffic. CSX (CSX) and Canadian Pacific Railway (CP) were in second and third places with both gaining 1.5% each. In absolute terms, CSX’s volume growth was higher than Canadian Pacific’s.
CSX’s (CSX) rail traffic volume grew 1.5% YoY to 128,821 units mainly driven by robust intermodal growth, partially offset by a decline in carload traffic. In the first 48 weeks of 2018, the company recorded a 1.3% YoY increase in railcar traffic. However, CSX’s rail traffic gains were lower than US railroad (IYT) companies’ 3.7% gain during the same period.
United Continental (UAL) benefits from expansion initiatives and robust passenger revenues. However, high operating expenses are limiting the bottom line.
Ryanair's (RYAAY) impressive November traffic figures can be attributed to cheap air fares. The preliminary labor agreement with its German pilots is an added positive.
Disturbances at Trinity's (TRN) Rail Group and weak revenues at its Energy Equipment plus Railcar Leasing and Management Services units are major drags on the stock's performance.
CSX’s (CSX) rail traffic volume growth in week 47 was the slowest among Class I railroad companies. The company’s rail traffic grew 0.4% YoY (year-over-year) in week 47. The gain in carloads was mainly offset by weakness in the Intermodal segment. CSX hauled 110,092 railcars in week 47—compared to 109,624 railcars in week 47 of 2017.
C.H. Robinson (CHRW) benefits from strong freight demand and improved operational efficiency. The company's efforts to reward shareholders through dividends and repurchases are encouraging.
Norfolk Southern (NSC) reported 4.4% YoY growth in its rail traffic volume in week 47. The company hauled 134,716 total cars—compared to 129,058 units in the same week last year. The YoY growth was mainly driven by the strong performance in Norfolk Southern’s intermodal business. The growth was partially offset by weakness in the Carload segment.
Factors like robust freight activity, strong intermodal performance and prudent cost management are positives for railroads and should drive growth going forward.
Union Pacific’s (UNP) rail traffic volume grew 5.9% YoY to 157,752 units mainly due to strong intermodal growth. The growth was partially offset by a decline in carload traffic. In the first 47 weeks of 2018, the company recorded a 3.4% YoY increase in railcar traffic. Union Pacific’s rail traffic gains were lower than US railroad (XTN) companies’ 3.7% gain during the same period.
On November 28, the AAR (Association of American Railroads) released its rail freight traffic data for week 47, which ended on November 24. The AAR receives weekly rail data from 12 major US, Canadian, and Mexican railroad companies. The weekly rail traffic figures are divided into intermodal units and carload traffic.
Stock futures: Microsoft, Warren Buffett's Berkshire Hathaway, Cisco Systems, CSX and Centene are top stocks near buy points with 3 other bullish traits.
Expeditors (EXPD) benefits from a lower tax rate and strong performance of key sectors. The company's efforts to reward shareholders through dividends and repurchases are encouraging too.
Berkshire Hathaway-owned BNSF Railway (BRK.B) reported a 0.5% YoY fall in its rail traffic volume in week 46, as its weak intermodal performance more than offset the benefit of higher carload traffic. The company reported rail traffic volumes of 210,013 compared with 211,148 units in the same week of last year.
Surging freight demand and volume expansion place Canadian National (CNI) on a solid footing, evident from its upbeat expectations for the current year.
After a slow start in the first half of 2018, railroad stocks (XTN) have gained solid momentum in the second half of the year on better-than-expected earnings. On a YTD basis, all the major US railroad companies have provided positive returns with the exception of Kansas City Southern (KSU). Union Pacific (UNP), Norfolk Southern (NSC), CSX (CSX), Canadian National Railway (CNI), and Canadian Pacific Railway (CP) have gained 9.9%, 12.4%, 28%, 1.8%, and 10.3%, respectively.
In week 46, Canadian National Railway (CNI) reported 3% YoY total traffic volume growth. It moved 117,649 railcars compared to 114,233 units in week 46 of 2017.