Canadian National (CNI) February Grain Movement Hits New Record

Zacks Equity Research
·2 min read

Canadian National Railway Company’s CNI record-setting grain movement continues. The company shipped record volumes of Canadian grain for the 12th consecutive month in February 2021.

It shipped more than 2.28 million metric tonnes (MMT) of Canadian grain and processed grain products last month, exceeding its previous record set in February 2019 by more than 7%.

During the 2020-2021 crop year, Canadian National has moved more than 19.7 MMT of Canadian grain, which exceeds the three-year average of 15.9 MMT by 24%. It is also higher than the record set in the 2018-2019 crop year by 17%.

Canadian National Railway Company Price

Canadian National Railway Company Price
Canadian National Railway Company Price

Canadian National Railway Company price | Canadian National Railway Company Quote

The company’s ability to meet the significant rise in volumes is a result of its investments in track, locomotives and railcars, including the purchase of more than 2,500 new high-capacity grain-hopper cars.

This robust grain movement is aiding Canadian National’s top line despite overall freight volumes still being weak when compared with the 2019 levels. Notably, revenues from grain and fertilizers surged 19% year over year in the fourth quarter of 2020. This, combined with 12% rise in intermodal revenues, led to 2% increase in the top line. Despite freight softness, revenues from the grain and fertilizers sub-segment climbed 9% year over year in 2020.

Zacks Rank & Key Picks

Canadian National carries a Zacks Rank #4 (Sell).

Some better-ranked stocks in the broader Transportation sector are ArcBest Corp. ARCB, Saia, Inc. SAIA and USA Truck, Inc. USAK. While USA Truck sports a Zacks Rank #1 (Strong Buy), ArcBest and Saia carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Shares of ArcBest, Saia and USA Truck have rallied more than 100%, 70% and 39% in the past six months, respectively.

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