Wall Street Analysts Are Downgrading These 5 Stocks

In this article, we discuss the 5 stocks receiving downgrades from analysts. If you want to see more such stocks on the list, go directly to Analysts Are Downgrading These 10 Stocks. 

05. Canadian National Railway Company (NYSE:CNI)

Number of Hedge Fund Holders: 39

On August 1, Argus analyst John Eade adjusted his perspective on Canadian National Railway Company (NYSE:CNI), as the company’s revenue growth outlook is anticipated to present challenges in the coming quarters. Consequently, Eade has downgraded Canadian National Railway Company (NYSE:CNI) shares from a “Buy” recommendation to a “Hold” recommendation. While acknowledging Canadian National Railway’s effective management and its notable profitability within the industry, Eade has identified a potential stumbling block in the form of revenue growth. The composition of the company’s product mix, with a focus on segments such as autos that are experiencing weakness, is likely to impact its ability to achieve robust revenue growth in the near future.

Despite the company’s efforts, such as stock buybacks and a recent dividend increase of 10 percent, Eade highlights that Canadian National Railway Company (NYSE:CNI) historical performance in terms of shareholder returns has not been particularly impressive when compared to its peers. Additionally, the recent financial results reported by the railroad operator have fallen short of expectations. Given these factors, Eade suggests that the rail sector may currently offer more favorable opportunities for investment in the short term. He indicates that Canadian National Railway Company (NYSE:CNI) shares could regain a “Buy” recommendation if there are indications of improved revenue growth or if the share price experiences a decline to a support level near $70.