TSE:CNR
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Nervous markets await NvidiaThis summary was created by AI, based on 48 opinions in the last 12 months.
Canadian National Railway (CNR) is viewed as a critical player in the North American transportation infrastructure, operating within an oligopoly alongside Canadian Pacific Railway (CP). Opinions are mixed; while many analysts highlight the company’s strong business model and essential role in logistics between Canada and the U.S., concerns have emerged regarding recent challenges such as labor strikes and adverse weather affecting performance. The recent downturn in stock price has made the stock more attractive, prompting some experts to suggest it may be a good time to purchase. Many appreciate CNR's dividend growth and long-term stability, although fears of rising costs and increased competition due to the CP-Kansas City merger cast a shadow over its prospects. Overall, CNR is seen as a solid long-term investment, particularly for those interested in steady growth and income through dividends.
Rails are extremely capital-intensive businesses. Always lots of maintenance capex on the network and its equipment. Over many years, does generate FCF but it's not huge. Recession resistant. Duopoly. Not going away. Not the type of business or valuation (too high) his team goes for. Small dividend.
The transportation sector has been depressed this year and she sold in January. CN is the leading North American freight railroad. It is starting to look better with volatility stabilizing. The big story in on the operating levels and it is starting to look more efficient even without top-line growth, so there is potential upside. Analysts see 20% upside.
US and Canada are logical and natural long-standing historic trading partners, with tightly integrated supply chains. We need to get back to some semblance of normal. Hopefully, most things will be exempt under USMCA and we can get rid of the tit-for-tat tariffs.
If that happens, you'd expect to see trade flows pick up. That would advantage the transportation sector across the board. So both rails would probably be advantaged. Freight recession has gone on for almost 3 years, but stirrings of that changing. Big spike in manufacturing survey; if this is followed by ISM survey, then should be game on for the whole transportation sector. Sector's suffered from overcapacity, lack of pricing power, and tepid volumes.
Between the two, he'd pick CNR. It has the better network. Wildcard is massive east-west merger proposed in the US. See his Top Picks.
In general, he's avoiding transportation; an obvious place to get impacted by tariffs. Majority of traffic is north-south, so that's a question mark. Analyst estimates coming down and not flattening out. If you have unlimited time and patience, you'll be fine because it's a good company. But there are better uses for your capital in the near term.
The Union Pacific-Norfolk merger in the US more likely to happen under this administration than the last and will create more competition among all railroads, including CN. The industry is attractive, because there are few companies, but the downside is the lack of growth and the rails are economically sensitive. They sold off this year under Trump's tariffs. Sit tight, if you own it. Trades at a reasonably 17x PE. He prefers CP for its network across the US and Canada, but it will take time to return to favour.
He was asked to pick his choice of the two rail companies. Even though there is a freight recession CP has better growth going forward and is a turn-around type of story. It has the best management and real estate. Its merger offers service to a different market. With rail, products can go all the way from the east coast to the west coast and with CP all the way from Canada to Mexico. Changing freight from one train to another by truck is very inefficient.
Look at the numbers first, story second. Numbers explain why stock's down. Revenue growth over the last 4 quarters hasn't been inspirational; very little growth, averages out to about zero. Margins are OK, but ROC is slipping a bit. For the long term, buy it and forget it, you'll be fine.
He wouldn't enter now. Wants to see the ROC move back up, which would need 5-8% revenue growth. He's had more success investing after results for the quarter are in; you might miss the first day where it gets a little pop, but the stock could also go down for the next 3 months.
Recent move down takes it to probably 17x forward PE, not bad. People are overly worried about economic risk. Will get east-west deliveries from the Jansen mine, plus increase in energy infrastructure. Sees more risk north-south. Not having owned it in a long time, he's started picking away at it.
He'd rather buy into weakness than chase things that have been running hard.
Same comments as Cargojet: Chart shows a downtrend, being a laggard, but lately is starting to catch up. You can nibble at here. If we're starting a new economic cycle now, it will be positive for CJT and the economy. Expect weakness in a pullback coming. Play the long game and start adding to this now, but gradually.
Pricing power. Good track record on safety. Last year, economy was weaker, and this hit the rails. Labour disruptions. Volumes were affected. Affirmed guidance after Q1 reporting, expects 10-15% EPS growth (assuming there's still volume growth and no recession). Valuation is now at a very attractive multiple compared to historical levels and to the group.
Went public in 1995, and has increased dividend every year since. Yield is 2.49%.
Canadian National R.R. is a Canadian stock, trading under the symbol CNR-T on the Toronto Stock Exchange (CNR-CT). It is usually referred to as TSX:CNR or CNR-T
In the last year, 37 stock analysts published opinions about CNR-T. 21 analysts recommended to BUY the stock. 8 analysts recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for Canadian National R.R..
Canadian National R.R. was recommended as a Top Pick by on . Read the latest stock experts ratings for Canadian National R.R..
Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.
37 stock analysts on Stockchase covered Canadian National R.R. In the last year. It is a trending stock that is worth watching.
On 2025-09-05, Canadian National R.R. (CNR-T) stock closed at a price of $133.76.
Holds neither. Not overly interested in the space at this time, given the soft environment we're in in Canada. Q2 GDP was -1.6%. Tariffs are also affecting companies, so volume of shipments is lower. Time to own rails is earlier in the economic cycle.
If he had to choose, it would be CP -- it's more diversified in the US and Mexico.