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The Q4 earnings season is off to a strong start with impressive reports from big names like JPMorgan Chase & Co. JPM. According to our latest Earnings Preview report, 63 S&P 500 members (representing 19.1% in terms of market capitalization) have reported their quarterly numbers so far.

The picture to have emerged thus far is an extremely optimistic one with the bottom line expanding 4.7% and the top line growing 2.7%. Of the 63 companies to have unveiled their results thus far, 66.7% reported better-than-expected earnings, while 50.8% of these S&P 500 members  surpassed top-line expectations.

However, the picture is not that rosy for the widely-diversified transportation sector (one of the 16 Zacks sectors). So far, 46.7% of the transportation companies (listed on the S&P 500 Index) have reported Q4 results. The bottom line for this space has contracted 15.1%, thanks to disappointing reports from the likes of Kansas City Southern KSU and Canadian Pacific Railway Limited CP.

This week will be an extremely busy one with earnings reports flowing in from all quarters. The current week will see 330 companies, including 105 S&P 500 players, reporting their financials. Coming back to the transportation sector, big names like American Airlines Group AAL and Southwest Airlines LUV will unveil their respective quarterly numbers this week.

As discussed above, the transportation sector continues to struggle. Hence, investors interested in this space will keenly await reports from key sector participants like Canadian National Railway Company CNI, Heartland Express, Inc. HTLD and Marten Transport, Ltd. MRTN.

Based in Montreal, Canadian National Railway Company is engaged in the rail and related transportation business. The company is scheduled to report Q4 results on Jan 24. According to our quantitative model, a company needs the right combination of two key ingredients – a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or at least 3 (Hold) – to increase the odds of an earnings surprise. Canadian National satisfies both conditions, making it likely to report better-than-expected Q4 earnings. The railroad operator currently has an Earnings ESP of +2.17% (the Most Accurate Estimate is 2 cents above the Zacks Consensus Estimate of 92 cents). The company has a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Canadian National Railway Co. Price and EPS Surprise

Canadian National Railway Co. Price and EPS Surprise | Canadian National Railway Co. Quote