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CN reaches new labor agreement with Unifor

Published 12/23/2024, 09:46 PM
CNI
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The ratification of these agreements is expected to provide stability and support for CN's continued commitment to safe and efficient transport services across its extensive network. With the stock's RSI indicating oversold conditions and a moderate debt level, CN appears well-positioned for continued operational success. This news is based on a press release statement and InvestingPro data, where investors can access the comprehensive Pro Research Report covering CN's detailed financial analysis.

Tracy Robinson, President and CEO of CN, expressed satisfaction with the collaborative nature of the negotiations, highlighting that the new agreements will bolster the workforce and enhance CN's service reliability throughout North America. The agreements, which are set to expire on December 31, 2028, include annual wage increases of 3%. This commitment to workforce stability complements CN's strong shareholder returns, including a 29-year track record of consecutive dividend payments, as reported by InvestingPro.

CN, a vital component of the North American economy, operates a nearly 20,000-mile rail network. The company specializes in the transportation of over 300 million tons of resources, products, and goods each year, connecting the coasts of Canada to the U.S. Midwest and Gulf of Mexico. Currently trading near its 52-week low at $101.17, InvestingPro's Fair Value analysis suggests the stock may be slightly undervalued. The company has played a significant role in promoting sustainable trade and prosperity in the communities it serves since its establishment in 1919.

The ratification of these agreements is expected to provide stability and support for CN's continued commitment to safe and efficient transport services across its extensive network. With the stock's RSI indicating oversold conditions and a moderate debt level, CN appears well-positioned for continued operational success. This news is based on a press release statement and InvestingPro data, where investors can access the comprehensive Pro Research Report covering CN's detailed financial analysis.

In other recent news, Canadian National Railway (TSX:CNR) has seen considerable developments. The company reported a 2% increase in earnings per share (EPS) year-over-year, reaching $1.72 in the third quarter of 2024. This growth occurred despite macroeconomic and labor challenges. Additionally, the company's revenue increased by 3%, and RTMs grew by 2%, driven by long-haul intermodal and refined petroleum products.

Analysts from Evercore ISI upgraded Canadian National Railway's stock to Outperform, while Citi raised its rating to Buy. Both firms highlighted the potential for improved financial performance, with Citi projecting a high single-digit EPS compound annual growth rate through 2027.

In spite of the challenges faced in the past year, Canadian National Railway maintains strong fundamentals with a gross profit margin of 55% and a P/E ratio of 17.3x. These recent developments indicate a positive trajectory for the company as it continues to navigate the market landscape.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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