(The Associated Press circulated the following on September 23.)
WASHINGTON, D.C. — A Goldman Sachs analyst on Tuesday added Canadian National Railway Co. to a list of recommended stocks, noting the railroad has the best volume growth among the largest North American rails and called it the “best executor” among its competitors.
Analyst David Feinberg placed Canadian National on the America’s Buy list and raised his earnings predictions for the company, suggesting the rail will continue to benefit from carload strength and the strengthening U.S. dollar.
But Feinberg said his favorite stock among large North American, or Class 1, railroads, is Kansas City Southern, because of “above average volume growth” and strong Mexican operations. He rates the rail a “Conviction Buy.”
He also reiterated his “Buy” rating on Union Pacific Corp. citing the company’s increased third-quarter earnings projection and strong pricing.
Across the group, Feinberg said that third quarter earnings will be boosted by lower fuel prices. The group is especially benefiting because of the two-month delay in their fuel surcharges.