Two blue chip industrial stocks, Canadian National Railway and Johnson Controls, have pulled back slightly and may present buying opportunities. Canadian National Railway, which has a 19,500-mile North American network and a monopoly over Canada's port of Prince Rupert, saw a 1.5% decline for the week ending June 24 against a 17.3% year-to-date gain, while Johnson Controls, a building systems company with exposure to data center cooling, fell 1.6% over the past week but is up 19.3% this year. Canadian National is noted for its high-teens cash flow as a percentage of revenue and efficient operating model, having grown earnings per share by 7% last year despite a $350 million revenue hit from U.S. trade tariffs, with spending poised to decline by $500 million and ongoing share buybacks. Johnson Controls, founded in 1885, is benefiting from data center demand that is driving the bulk of its order growth in the Americas, contributing to a $20 billion backlog and leading management to raise 2026 earnings-per-share guidance to $4.85 from $4.55, while some analysts see potential value from selling or spinning off its fire and security unit.
Canadian National Railway CompanyArticle highlights share buybacks, declining spending, and efficient operating model as buying opportunity.
Johnson Controls International PLCData center demand driving order growth and raised earnings guidance.
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