Should I buy Canadian National Railway stock in 2025?

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At HelloSafe, our expert has been tracking the performance of Canadian National Railway for more than three years. Every month, hundreds of thousands of users across Canada rely on us to analyze market trends and highlight the best investment opportunities. Our analyses are crafted solely for informational purposes and do not represent investment advice. Following our code of ethics, we have never accepted, and will never accept, payment or compensation from Canadian National Railway.

What is Canadian National Railway?

How much is Canadian National Railway stock?

The price of Canadian National Railway stock is rising this week. As of now, the stock is trading at $96.79, reflecting a 0.37% gain over the past 24 hours but a 1.00% decline over the week.

With a relatively low volatility and strong industry positioning, Canadian investors can consider this a resilient option for dependable, long-term growth.

Our full analysis on Canadian National Railway stock

Having thoroughly reviewed Canadian National Railway’s latest financial results alongside its three-year price evolution, our team synthesized a range of financial indicators, technical signals, market dynamics, and competitive factors through proprietary algorithms. The analysis reveals a compelling mix of structural resilience and emerging opportunities for investors navigating North America’s essential transport sector. So, why might Canadian National Railway stock once again become a strategic entry point into the infrastructure and industrial logistics space in 2025?

Recent Performance and Market Context

After several years of notable strength, Canadian National Railway (CN; TSX: CNR, NYSE: CNI) has recently faced a period of market correction. The stock now trades at $96.79 USD, marking a 1-year decline of -22.71% and a 6-month drawdown of -12.78%. Despite this retreat, the stock’s average daily turnover remains robust at 1.52 million shares, underscoring continued institutional and retail engagement.

A sequence of positive corporate actions has helped mitigate broader market pessimism: CN’s board sanctioned a 5% dividend hike effective Q1 2025, reinforcing its commitment to growing shareholder distributions. The recent closing of the Iowa Northern Railway acquisition further cements CN’s dominance in the North American railway corridor, strengthening its long-term network economics.

Crucially, underlying macroeconomic conditions have begun to inflect positively for the industry. With North American freight demand stabilizing and infrastructure investment gaining momentum—supported by both private capital and public policy tailwinds—rail operators like CN are positioned to benefit from the dual forces of supply chain normalization and higher trade volumes. Amid a defensive sector rotation and rising appetite for dividend-paying, real-asset-rich equities, CN’s combination of yield, scale, and asset durability stands out.

Technical Analysis

Technical factors present an increasingly constructive environment. The stock’s 14-day relative strength index (RSI) reads at 46.17, squarely within neutral territory—neither overbought nor oversold—indicating room for fresh directional moves. Likewise, while the MACD currently skews mildly negative (-0.31), this is consistent with a consolidation phase rather than a sustained downtrend.

Of note, CN’s current price is now hovering just above key support at the $91.65 area (its 52-week low) and still well below resistance at $129.18 (the 52-week high), suggesting the downside risk may be limited by strong foundational demand.

Shorter-term moving averages are clustered very close to the current price (20-day MA: -0.78%, 50-day MA: -1.75%), highlighting a possible inflection point where price momentum could swiftly reverse. Meanwhile, the 200-day moving average normalization (-10.01%) affirms that much of the earlier correction has been absorbed, and a new trading range may be forming.

Overall, the technical setup indicates a maturing base; any sustained move above intermediate resistance levels could be a precursor to renewed bullish momentum. For investors, this consolidation zone seems to represent an excellent opportunity to gain exposure ahead of potential upward catalysts.

Fundamental Analysis

Beneath CN’s share price volatility lie resilient financials. The company generated $12.44 billion in trailing-twelve-month revenues with solid operating income of $4.62 billion and net earnings of $3.25 billion. Crucially, the company has met top-line expectations, retaining fiscal discipline even as pressures on margins have emerged—a testament to cost control and operational efficiency.

• Revenue Growth: CN projects ~6% revenue growth in 2025 and is targeting 10-15% EPS growth, suggesting the ability to generate disproportionate earnings leverage from incremental sales.
• Profitability: An 18.91 P/E ratio positions CN at a significant valuation discount versus major industrial technology peers, while its 2.57% dividend yield enhances the total return outlook. These multiples appear attractive, especially when contextualized against CN’s historically superior return on equity and strong free cash flow generation.
• Structural Strengths: Few competitors can rival CN’s extensive network, which stretches across Canada and deep into the U.S., providing unmatched access and flexibility to shippers. The railway’s commitment to continuous capex investment—C$3.4 billion earmarked for 2025—positions it for sustainable, innovation-driven growth.

Furthermore, CN’s network effect and inbuilt barriers to entry offer rare, defensible economic moats. Its brand reputation, reliability, and integrated supply chain role confer advantages that new entrants or less-diversified peers cannot easily replicate.

Volume and Liquidity

Market conviction in CN remains strong, as indicated by sustained healthy trading volumes averaging 1.52 million shares daily on the NYSE. Liquidity of this magnitude not only facilitates efficient entry and exit but also implies deep, broad-based investor confidence—even amidst a corrective context.

The float structure remains optimal: a sizable institutional ownership (nearly 69%), with strategic stakes held by long-term investors like the Gates Foundation Trust (8.72%) and renowned global funds such as TCI (4.72%). Such backing amplifies the stock’s stability and its propensity for rapid valuation recalibration as sentiment and earnings momentum recover.

Catalysts and Positive Outlook

• Earnings Momentum: The imminent Q1 results (slated for May 1, 2025) may provide an upward inflection point on the back of recent margin stabilization and enhanced network utilization after the Iowa Northern Railway integration.
• Dividend Growth: The 5% increase in the quarterly dividend—on top of an already competitive yield—signals management’s rising conviction and offers a meaningful income stream, especially in a lower-rate environment.
• Network Expansion: By finalizing the Iowa Northern Railway acquisition, CN steps closer to a fully integrated and intermodal cross-border network, a compelling catalyst for market share gains and pricing power.
• Capex-Fueled Efficiency: Strategic investments of C$3.4 billion will focus on modernization, digitization, and sustainability (notably through ESG-aligned rail infrastructure upgrades), which should enhance capacity, reliability, and long-term profitability.
• Industry Tailwinds: Ongoing recovery in North American industrial output, supportive government infrastructure policies, and cautious optimism regarding global trade trajectories underpin a backdrop for steady volume recovery in rail freight.

All told, the convergence of these drivers points toward a new bullish phase—one underpinned by tangible operational advances, innovation, and evolving market recognition of CN’s premium infrastructure status.

Investment Strategies

With CN shares stabilized in proximity to 52-week support and technical indicators signaling a mature consolidation, the current zone seems ideally positioned for a range of entry strategies:

• Short-term: Traders may seek to capitalize on the prospective post-earnings volatility (early May), targeting mean reversion toward intermediate resistance.
• Medium-term: Momentum-oriented investors could accumulate on technical lows, using recent moving average convergence as a signal for a probable trend reversal, especially as upcoming capital programs and integration of newly acquired assets begin to reflect in forward guidance.
• Long-term: Strategic buyers, including institutional allocators and income-focused investors, may view current levels as a rare opportunity to secure exposure to a blue-chip infrastructure franchise at an attractive yield, supportive valuation, and structural growth phase.

Each approach arguably benefits from the current context: a high-quality asset close to technical and economic troughs, with clear visibility on medium- to long-term earnings accretion and capital returns.

Is it the Right Time to Buy Canadian National Railway?

• A market-leading infrastructure operator returning to value territory after a period of underperformance.
• Robust financial health, disciplined capital allocation, and proactive shareholder rewards through dividend growth.
• Powerful near-term and structural catalysts, including accretive M&A, stepped-up capex, and rising utilization fueled by stabilizing macro conditions.
• Technical and volume signals indicating a possible new base formation and reduced downside risk.

With analysts’ consensus price target standing ~30% above the current price and growth projections reaffirmed for the coming year, the fundamentals now seem to justify a renewed, rigorous interest in CN. The infrastructure and industrial logistics sector is poised for a re-rating, and this stock may well be entering a new bullish phase—backed by world-class assets, disciplined management, and a visible growth trajectory.

In sum, Canadian National Railway appears to offer an excellent opportunity for investors looking to participate in the resurgence of North American transportation infrastructure—combining reliable income, capital growth potential, and a fortress strategic position. For those seeking to realign with blue-chip industrial names at compelling levels, CN merits serious consideration as a core portfolio holding for 2025 and beyond.

How to buy Canadian National Railway stock in Canada?

Buying Canadian National Railway (CNR) shares online is both straightforward and secure when you use a regulated broker in Canada. You can become a shareholder with just a few clicks, benefitting from robust investor protections and clear procedures. Investors generally have two main methods to consider: traditional spot buying (owning shares outright), and trading Contracts for Difference (CFDs), which allow you to speculate on the price without owning the actual stock. Each method has its own advantages, costs, and risk profile. For a detailed comparison of the best brokers available in Canada, please refer to the broker comparison found further down this page.

Spot Buying

A cash or “spot” purchase means you are buying Canadian National Railway stock directly on the market in your own name. This is the most common way Canadian investors build long-term wealth through shares, as you become a full shareholder eligible for dividends and voting rights. Typical fees for this method are a fixed commission per transaction—often in the range of CAD $5 to $10 for most online brokers.

Important information

Example: If the current Canadian National Railway share price is $96.79 CAD, you could buy around 10 shares with a $1,000 investment, taking into account a typical brokerage fee of about $5.
- Calculation: ($1,000 - $5 fee) / $96.79 ≈ 10.3 shares (rounded down to 10 shares for simplicity).

✔️ Gain scenario:
If the share price increases by 10%, your shares are now worth about $1,100.
Result: That’s a gross gain of $100, or +10% on your initial investment (before tax or further transaction fees).

Trading via CFD

A CFD, or Contract for Difference, allows you to trade on Canadian National Railway’s price movements without actually owning the shares. CFD trading is more flexible: you can go long (bet on a price rise) or short (bet on a fall), and even apply leverage to amplify your exposure. However, unlike spot buying, you do not receive dividends or voting rights. Fees mainly include the spread (difference between buy and sell prices) and potential overnight financing costs if you hold positions open over several days.

Important information

Example: Suppose you open a CFD position on Canadian National Railway shares with $1,000 as margin and use 5x leverage. This gives you a market exposure of $5,000.
- If the share price rises by 8%, your position value increases by 8% × 5 = +40%.
Result: That’s a $400 gain on your $1,000 margin (not counting spread or overnight fees).

Final Advice

Before investing, it’s vital to compare each broker’s fees and trading conditions, as these can significantly impact your returns. Both spot buying and CFD trading offer unique advantages: spot buying is suited for investors seeking long-term growth and dividends, while CFDs cater to those interested in short-term strategies or leveraging their capital. Ultimately, your choice should align with your financial goals, risk tolerance, and investment horizon. For help choosing the right platform, consult the broker comparison table provided further down this page.

Platforms

Minimum Deposit

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Star Trader

4.9

Minimum Deposit

$50

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Broker specializing in Forex and CFDs

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IFC Markets

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Minimum Deposit

$1

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with our partner IFC Markets

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Broker regulated since 2006

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Avatrade

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Our 7 tips for buying Canadian National Railway stock

The latest news about Canadian National Railway

Canadian National Railway’s Board has approved a 5% increase to its quarterly cash dividend for 2025. This move emphasizes the company’s ongoing commitment to rewarding Canadian shareholders and highlights its confidence in stable long-term cash flows. The dividend increase is particularly constructive in supporting income-oriented portfolios and is expected to enhance the stock’s attractiveness for domestic investors who benefit from the Canadian dividend tax credit, further improving effective after-tax returns compared to foreign holdings.

CN has finalized the acquisition of Iowa Northern Railway, strengthening its cross-border network and trade opportunities. The integration of Iowa Northern Railway extends CN’s operational reach within key North American corridors, directly benefitting Canadian exporters and manufacturers through improved logistics, network efficiency, and reinforced market access to the U.S. Midwest. This strategic move is aligned with CN’s objective of consolidating its role as a critical transportation link for Canadian industries, further enhancing its ability to serve high-value markets and supporting long-term volume growth.

For fiscal 2025, Canadian National Railway projects 10–15% adjusted diluted EPS growth, with revenue growth estimated at 6%. These official forecasts, disclosed ahead of the May 1, 2025 earnings release, signal management’s confidence in operational resilience and the ability to generate superior earnings despite recent market volatility. The positive outlook is underpinned by investing C$3.4 billion in infrastructure, technology, and network modernization, which boosts the company’s competitiveness and supports reliable service across Canadian regions, catering to both domestic and export freight flows.

Analyst sentiment remains neutral to slightly positive, with a consensus price target of $114.89—over 30% above current levels. While the stock has experienced a one-year decline of more than 22%, expert coverage underlines a constructive medium-term potential, reflecting strong fundamentals, a stable dividend profile, and CN’s leadership in the Canadian transportation sector. Institutional investors—including major Canadian and international funds—maintain significant positions, supporting liquidity and signaling ongoing confidence in the company’s value proposition for Canadian portfolios.

Technical indicators reveal that CN stock is consolidating, with a neutral RSI and price stabilizing near key support levels. The 14-day RSI of 46.17 suggests the stock is neither overbought nor oversold, while current prices hover just above both primary moving averages and the 52-week low support. These signals, combined with moderate trading volumes and a relatively low beta of 0.83, indicate limited short-term downside risk and the potential for upward movement as positive catalysts—the dividend increase, network expansion, and strong earnings projections—take effect.

FAQ

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.