Here's Why You Should Retain Canadian National Stock for Now

Group 1: Company Performance - Canadian National's (CNI) top line is bolstered by strong segmental performance, with overall revenue ton miles (RTMs) growing by 13% year over year in Q2 2024, driven by a 19% rise in international intermodal and a 12% rise in petroleum and chemicals [2][5] - The company is expanding its fleet, with the 2024-2025 Grain Plan including the delivery of 750 new high-efficiency grain hopper cars and a focus on scheduled railroading and safety improvements [3][4] - CNI declared a quarterly dividend of C$0.8450 per share in Q2 2024 and repurchased 3.5 million common shares for $597 million, with plans to repurchase up to 32 million shares between Feb. 1, 2024, and Jan. 31, 2025 [4] Group 2: Operating Expenses and Liquidity - Total operating expenses increased by 12.8% year over year in Q2 2024, primarily due to a 13.8% rise in labor costs, which account for 30.7% of total operating expenses [5][6] - Fuel costs, comprising 19.7% of total operating expenses, jumped by 12.6% year over year, contributing to the overall increase in operating expenses [6] - CNI's liquidity position is concerning, with a current ratio of 0.63, indicating potential difficulties in meeting short-term obligations [6] Group 3: Market Performance - Shares of CNI have declined by 6.6% year to date, contrasting with the industry's growth of 0.5% during the same period [6]