Railroads Sector Outperforms with: $CP, $CSX, $NSC, $CNI, $UNP Analyzed
Annualized Return
The railroads sector, encompassing prominent players such as Canadian Pacific Railway (CP), CSX Corporation (CSX), Norfolk Southern Corporation (NSC), Canadian National Railway Company (CNI), and Union Pacific Corporation (UNP), has undergone a noteworthy +3.01% surge in performance over the past week. However, a closer examination reveals a complex landscape marked by negative outlook signals and fluctuating market dynamics.
Negative Outlook and Technical Indicators
Tickers in the Group: CP, CSX, NSC, CNI, UNP
Despite the recent uptick, stocks in this group currently face a Negative Outlook, as supported by the Bollinger Bands Indicator and the Stock Fear & Greed Index. Tickeron's analysis predicts a further decline of more than 4.00% within the next month, with an 81% likelihood. This sentiment aligns with a daily ratio of advancing to declining volumes at 1.26 to 1 over the last month.
Interestingly, five stocks in the group confirm this negative outlook based on the Relative Strength Index (RSI), with an average odds projection of
Market Cap Insights
The average market capitalization across the group stands at 77.7B, with valuations ranging from 51.2B to 134B. Union Pacific (UNP) leads the pack with the highest valuation at 134B, while Norfolk Southern (NSC) holds the lowest valuation at 51.2B.
High and Low Price Notable News
In terms of price movements, the average weekly price growth across all stocks in the group was 4.5%. Notably, the average monthly price growth was 4.68%, and the average quarterly price growth reached 10.25%. Norfolk Southern (NSC) experienced the highest weekly price growth at 7.8%, while Canadian National Railway Company (CNI) faced the most significant fall at 2.23%.
Individual Stock Analysis
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Canadian Pacific Railway (CP): The Moving Average Convergence Divergence (MACD) turned positive on January 31, 2024. Historical data indicates a 72% chance of continued upward movement over the next month. CP's current price of $82.98 is below the lowest support line found by A.I. Throughout January, CP enjoyed a +5% uptrend, with the week of January 26 - February 2 witnessing a +6% growth.
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Union Pacific Corporation (UNP): UNP's MACD turned positive on January 30, 2024, with a 66% chance of continued upward movement. The current price of $246.57 is above the highest support line found by A.I. UNP experienced a +2% uptrend in January, with the week of January 26 - February 2 seeing a +3% growth.
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CSX Corporation (CSX): CSX's MACD turned positive on January 29, 2024, with a 65% chance of continued upward movement. The current price of $36.73 is between the support lines at $36.27 and $38.15. Throughout January, CSX witnessed a +6% uptrend, with the week of January 26 - February 2 showing a +3% growth.
Volume Trends
While the average weekly volume growth across all stocks in the group was -13.39%, the monthly and quarterly trends painted a different picture, standing at 39.28% and -16.27%, respectively.
In summary, while recent positive performances in the railroads sector are evident, caution is advised based on the negative outlook signals and the diverse trends exhibited by individual stocks within the group. Investors should closely monitor technical indicators and market dynamics for a comprehensive understanding of potential future trajectories.
CP sees its 50-day moving average cross bearishly below its 200-day moving average
The 50-day moving average for CP moved below the 200-day moving average on November 05, 2024. This could be a long-term bearish signal for the stock as the stock shifts to an downward trend.
Technical Analysis (Indicators)
Bearish Trend Analysis
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In of 69 cases where CP's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are .
The Momentum Indicator moved below the 0 level on November 11, 2024. You may want to consider selling the stock, shorting the stock, or exploring put options on CP as a result. In of 83 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for CP turned negative on November 13, 2024. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 45 similar instances when the indicator turned negative. In of the 45 cases the stock turned lower in the days that followed. This puts the odds of success at .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where CP declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Aroon Indicator for CP entered a downward trend on November 13, 2024. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Bullish Trend Analysis
The RSI Oscillator points to a transition from a downward trend to an upward trend -- in cases where CP's RSI Indicator exited the oversold zone, of 29 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
CP may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 80, placing this stock better than average.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to consistent earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating fairly steady price growth. CP’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating slightly better than average sales and a considerably profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (2.242) is normal, around the industry mean (1.881). P/E Ratio (27.975) is within average values for comparable stocks, (20.708). Projected Growth (PEG Ratio) (2.368) is also within normal values, averaging (4.092). Dividend Yield (0.007) settles around the average of (0.037) among similar stocks. P/S Ratio (6.859) is also within normal values, averaging (2.901).
Notable companies
Industry description
Market Cap
High and low price notable news
Volume
Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
General Information
a provider of rail-based transportation services
Industry Railroads