Is CN Rail stock a buy right now?
As of late April 2025, CN Rail (CNR: TSX) trades near CAD 133.50, with average daily volume around 1.31 million shares—demonstrating robust, sustained market attention. Despite a six-month downturn and shares currently sitting well below their 200-day moving average, CN Rail’s fundamentals remain notably sound. The company’s network, spanning three coasts, underpins a significant portion of North American trade, making it central to the continent’s logistics and supply chains. Recent cycles of lower earnings, impacted by economic headwinds and arbitration decisions with unions, have been absorbed with expected resilience and are viewed in the market as manageable, thanks to CN’s operational discipline and strategic capital investments. Importantly, management has reiterated plans for substantial network investment in 2025 and guided for adjusted EPS growth of 10-15%—a constructive sign amid sector volatility. Analyst and institutional sentiment is cautiously optimistic, seeing present price levels as a value opportunity backed by a strong dividend history and defensive cash flows. According to the consensus from over 34 national and international banks, the near-term target for CN Rail shares is established at CAD 173, reflecting broad confidence in the company’s stability and growth trajectory within the industrials sector.
- Extensive North American rail network connects Atlantic, Pacific, and Gulf coasts.
- Consistent dividend payments provide a yield of 2.66% with demonstrated growth.
- Strong pricing power and diversification across key freight segments.
- Planned capital expenditures support future efficiency and capacity expansion.
- Lower stock volatility (beta 0.83) than broader equity markets.
- Recent technical weakness: share price below major moving averages.
- Earnings sensitive to economic cycles and potential labor actions.
- What is CN Rail?
- How much is CN Rail stock?
- Our full analysis on CN Rail </b>stock
- How to buy CN Rail stock in Canada?
- Our 7 tips for buying CN Rail stock
- The latest news about CN Rail
- FAQ
Why trust HelloSafe?
At HelloSafe, our expert has been monitoring CN Rail's performance for more than three years. Each month, hundreds of thousands of Canadians rely on us to interpret market trends and highlight the best investment opportunities. Our analyses are provided for informational purposes only and do not constitute investment advice. In keeping with our ethical guidelines, we have never been and will never be compensated by CN Rail.
What is CN Rail?
| Indicator | Value | Analysis |
|---|---|---|
| 🏳️ Nationality | Canada | Headquartered in Canada, CN Rail is a key part of North American trade infrastructure. |
| 💼 Market | Toronto Stock Exchange (TSX), ticker: CNR | Listing on the TSX gives broad access to Canadian and international investors. |
| 🏛️ ISIN code | CA1363751027 | The ISIN uniquely identifies CN Rail on global financial markets. |
| 👤 CEO | Tracy Robinson | Stable leadership with a focus on efficiency and network investment. |
| 🏢 Market cap | CAD 83.87 billion | Large-cap status signals stability but may limit rapid growth potential. |
| 📈 Revenue | CAD 17.05 billion (2024) | Slight year-over-year growth despite challenging economic conditions. |
| 💹 EBITDA | Not specified (but implied strong margin) | Healthy margins reflect operational efficiency and disciplined cost management. |
| 📊 P/E Ratio (Price/Earnings) | 19.04 | Valuation is reasonable; currently trading below historical highs, indicating a potential bargain. |
How much is CN Rail stock?
The price of CN Rail stock is rising this week. As of now, CN Rail trades at CAD 133.51 with a slight intraday gain of +0.04%, though the stock is down -1.63% over the past week.
Its market capitalization stands at CAD 83.87 billion, with an average three-month daily volume of 1.31 million shares. The P/E ratio is 19.04, and the current dividend yield is a solid 2.66%, while the stock’s beta of 0.83 suggests relatively low volatility compared to the broader market.
This combination of defensive qualities and dependable dividends makes CN Rail a notable consideration for Canadian investors seeking stability.
Compare the best brokers in Canada!Compare brokersOur full analysis on CN Rail stock
Having thoroughly reviewed Canadian National Railway (CN Rail)’s latest financial results and analyzed the stock’s performance over the past three years, we leveraged a combination of proprietary algorithms, integrating financial indicators, technical signals, market data, and competitive positioning. This comprehensive approach delivers an in-depth assessment tailored for Canadian investors seeking strategic opportunities. So, why might CN Rail stock once again become a strategic entry point into the North American transportation and infrastructure sector in 2025?
Recent Performance and Market Context
Over the past twelve months, CN Rail (TSX: CNR | NYSE: CNI) has experienced a substantial correction, closing at CAD 133.51 on April 30, 2025—down 21.28% year-over-year and off -13.45% in the last six months. While such a decline may raise questions for some, it is precisely at moments of consolidated weakness that disciplined investors often find superior entry points, provided the fundamentals remain robust.
Several positive recent events underscore tangible reasons for optimism. Most notably, management’s reaffirmation of double-digit EPS growth guidance (10-15%) for 2025 demonstrates confidence in operational momentum and business resilience. In parallel, ongoing capital investments nearing CAD 3.4 billion illustrate a commitment to enhancing network efficiency, service reliability, and future earnings capacity. Notwithstanding cyclical softness and broader sector volatility, CN Rail’s business remains insulated by its pivotal role in North American logistics.
This favorable macroeconomic context—characterized by recovering industrial activity, renewed demand for commodities, and persistent supply chain modernization—bodes well for rail operators. CN Rail, with its unparalleled three-coast network and diversified commodity exposure, stands to benefit as markets stabilize and demand normalizes into the latter half of 2025.
Technical Analysis
Technical readings further strengthen the argument for a potential bullish reversal. Currently, CN Rail trades firmly below every major moving average—5-day (134.03), 20-day (136.26), 50-day (139.81), 100-day (143.82), and 200-day (150.37)—which typically denotes an oversold condition. The Relative Strength Index (RSI) at 40.81% is in neutral territory, approaching levels historically associated with value inflection points.
The MACD (-2.30) shows residual bearish sentiment, but the stochastic oscillator (%K at 28.81%, %D at 34.85%) is edging closer to oversold territory, hinting at exhaustion of selling pressure. This technical setup often precedes short- to medium-term trend reversals, especially when approached in proximity to major support.
Key support around CAD 130–131 aligns closely with the 52-week low (130.02), fortifying the case for a strong technical floor. Short-term resistance near CAD 138–140 represents a natural threshold that, if breached, could trigger momentum buying and signal a new phase of accumulation. The convergence of these indicators suggests that the stock may be poised for an imminent recovery as technical and fundamental narratives begin to align.
Fundamental Analysis
CN Rail's core fundamentals reinforce its strong investment profile. Despite a challenging 2024—where earnings softened by 20.92% year-over-year to CAD 4.45 billion—the company still managed to increase annual revenues to CAD 17.05 billion (+1.30% YoY), outpacing the sector average. The company has maintained robust profitability metrics, with a forward P/E of 16.99, making current valuations increasingly attractive against historical and peer benchmarks.
Strategically, CN Rail’s extensive network—spanning the Atlantic, Pacific, and Gulf coasts—remains irreplaceable within North America’s logistics infrastructure. Its diversified business segments, stretching across intermodal, energy, agriculture, automotive, and manufacturing, reduce exposure to isolated economic shocks, offering resilience and stability through the economic cycle.
Further, CN Rail’s disciplined approach to capital allocation continues to bolster operational efficiency. The company’s focus on service reliability, cost control, and capacity expansion positions it to benefit from eventual volume recovery and margin improvement. Ongoing initiatives in digitalization, train automation, and ESG-integrated network upgrades hint at innovation and adaptability, often seen as catalysts for sustained value creation.
With a price-to-earnings multiple of 19.04 and annual EPS (trailing) at CAD 7.01, CN Rail trades at a level that seems to underappreciate the quality and growth prospects embedded in the business model. The stability of its dividend (yielding 2.66%, with an annual payout of CAD 3.55) adds further appeal, especially as the company boasts a multi-decade track record of reliable, growing distributions.
Volume and Liquidity
The liquidity profile for CN Rail remains robust, with an average daily trading volume of 1.31 million shares over the past three months. This sustained activity serves as a clear indicator of ongoing institutional interest and market confidence, even through periods of technical weakness.
A float that remains substantial but not excessively diluted supports both stability and the potential for dynamic appreciation as sentiment turns. This blend of liquidity and float structure makes CN Rail accessible to a broad spectrum of investors, facilitating efficient entry and exit strategies even in volatile markets.
Catalysts and Positive Outlook
- Quarterly Earnings Visibility: The upcoming Q1 2025 earnings call (May 1, 2025) is widely anticipated. Guidance for 10–15% EPS growth suggests a strong likelihood of robust performance and positive surprises.
- Capital Investment: A CAD 3.4 billion capex allocation underpins planned expansions and operational upgrades, likely driving long-term value through capacity, speed, and service improvements.
- Network Innovation: CN Rail’s digital rail programs, predictive analytics, ESG initiatives (including emissions reduction and network electrification), and automation all serve as levers for margin enhancement and competitive differentiation.
- Sector Tailwinds: Recovery in North American freight, stronger commodity markets (notably in grain and petroleum), and renewed focus on rail as a sustainable, efficient transport mode diversify and fortify the revenue profile.
- Strategic Positioning: With its resilient three-coast network, the company is insulated from region-specific shocks, allowing it to capture growth as North American trade, manufacturing, and supply-chain re-shoring gather pace.
In sum, CN Rail appears uniquely positioned to capture accelerating demand while translating operational advancements into higher earnings and shareholder rewards.
Investment Strategies
- Short-term: Tactical trades near the established CAD 130–131 support, targeting mean reversion towards initial resistance (CAD 138–140), present an attractive risk-reward profile, especially as technical oscillators flirt with oversold levels.
- Medium-term: For those seeking a strategic exposure to an eventual recovery in North American freight activity, accumulating shares ahead of the Q1 2025 earnings release or in anticipation of dividend announcements can offer potential for both capital appreciation and income.
- Long-term: Investors with a multi-year horizon may wish to initiate or build positions at current levels, capturing value as the business executes on its capex cycle, benefits from secular growth in trade and sustainable infrastructure, and continues its tradition of dividend growth. Afforded by a well-entrenched market position, high barriers to entry, and a commitment to ESG and innovation, CN Rail’s long-term prospects appear increasingly attractive, particularly at present-day discounts from historical highs.
Each of these approaches is supported by disciplined entry at or near technical lows and consideration of timing relative to major corporate catalysts, all while leveraging the company’s demonstrated consistency.
Is It the Right Time to Buy CN Rail?
In summary, CN Rail showcases a rare intersection of value and quality: a blue-chip operator with dominant market share, a reliable dividend history, best-in-class operational metrics, and a clear path to earnings growth as macroeconomic headwinds fade. The recent share price correction, combined with positive momentum in capital expenditure, digital transformation, and sector tailwinds, serves to justify renewed interest from both income- and growth-oriented investors.
Technical indicators suggest the stock is deeply oversold, with robust support near its multi-year lows and a number of bullish reversal signals emerging. Meanwhile, the company’s balance sheet, steady cash flows, and moderate valuation augur well for investors willing to look beyond near-term volatility.
The imminent earnings report, renewed fiscal discipline, and management’s long track record of execution reinforce the thesis that CN Rail may be entering a new bullish phase. For investors seeking exposure to critical infrastructure with the prospect of resilient long-term returns, CN Rail seems to represent an excellent opportunity at current levels.
As North American demand revives and supply chains modernize, CN Rail stands poised to benefit—and current conditions suggest that this may indeed be a strategic entry point for discerning portfolios.
How to buy CN Rail stock in Canada?
Buying CN Rail (CNR) stock online is straightforward and secure when you use a regulated Canadian broker. Today’s digital platforms let you buy shares directly or trade price movements through instruments like CFDs (Contracts for Difference). Spot buying means you actually own the shares in your portfolio, while CFD trading lets you speculate on price movements with leverage—often suited for more advanced traders. Each method has its own risk and reward profile. To help you find the best match for your needs, you’ll find a detailed broker comparison further down the page.
Spot buying
A spot (or "cash") purchase of CN Rail stock means you are buying real shares listed on the Toronto Stock Exchange (TSX), adding them to your investment account. This method is ideal for building wealth over time and benefitting from dividends, like CN Rail’s quarterly CAD 0.8875 payment. Brokers in Canada typically charge a fixed commission per order—often around CAD 5–10.
Example
If CN Rail shares are trading at CAD 133.51, a CAD 1,000 investment (minus an average CAD 5 commission) lets you buy approximately 7 shares (1,000 - 5 = 995; 995 / 133.51 = ~7 shares).
Gain scenario: If the share price rises by 10% to CAD 146.86, your 7 shares are now worth about CAD 1,028. Result: That’s a gross gain of approximately CAD 100, or +10% on your investment, not including dividends.
Trading via CFD
CFDs (Contracts for Difference) let you speculate on CN Rail share price movements without owning the underlying stock. These are derivatives: you can go long (bet on price increase) or short (bet on price decline), and use leverage—often up to 5x—so a smaller deposit offers larger market exposure. Typical fees include a spread (difference between buy and sell price) and overnight financing costs if you keep positions open beyond the trading day.
Example
You open a CFD position with CAD 1,000 and 5x leverage, giving you exposure to CAD 5,000 of CN Rail shares.
Gain scenario: If CN Rail stock rises by 8%, your position’s value increases by 8% × 5 = 40%. That’s a CAD 400 gain on your initial CAD 1,000 margin (excluding spread and financing fees).
Final advice
Before buying CN Rail shares or trading via CFDs, it’s essential to compare broker fees, commissions, and trading platforms. Each investor’s strategy—long-term ownership versus active trading—will determine the most suitable method. You’ll find a helpful broker comparison further down the page to guide your choice. Take time to weigh the pros and cons: your investment approach matters just as much as your stock selection.
Our 7 tips for buying CN Rail stock
| Step | Specific tip for CN Rail |
|---|---|
| Analyze the market | Assess recent price declines and technical indicators—CN Rail is trading near long-term support and below key moving averages, offering potential value for patient investors. |
| Choose the right trading platform | Use a Canadian brokerage that provides access to the TSX (CNR symbol), competitive fees, and a user-friendly platform for timely CN Rail trades and dividend tracking. |
| Define your investment budget | Allocate an amount that aligns with your risk tolerance, considering that CN Rail offers lower volatility and reliable dividends but is still cyclical with the economy. |
| Choose a strategy (short or long term) | CN Rail suits a long-term, buy-and-hold approach, given its blue-chip status, consistent dividends, and strong industry fundamentals, especially from current prices. |
| Monitor news and financial results | Track quarterly earnings (notably the May 1 release), analyst updates, and economic data on Canadian/U.S. freight trends, as these can impact CN Rail’s outlook and price. |
| Use risk management tools | Employ stop-loss orders near strong support (around $130) or use trailing stops to protect gains while allowing for positive momentum in CN Rail. |
| Sell at the right time | Consider taking profits when CN Rail approaches resistance zones ($138–$140) or after positive earnings surprises and dividend declarations, to maximize returns. |
The latest news about CN Rail
CN Rail has reiterated its 2025 guidance for 10-15% adjusted diluted EPS growth, underlining confidence in Canadian market resilience.
This reaffirmation, provided just days ahead of the company's Q1 2025 earnings release scheduled for May 1, sends a constructive signal to investors on the strength of both operational execution and end-market demand within Canada. Despite short-term headwinds and a notable year-over-year dip in annual earnings for 2024, management’s forward-looking targets reflect optimism towards improved freight volumes, network investments, and margin recovery driven by ongoing efficiency initiatives that are especially relevant for Canadian stakeholders.
Dividend stability remains a focal point as CN Rail maintains its quarterly payout of CAD 0.8875 with a 2.66% yield.
The continued commitment to a sizeable and regular dividend, as indicated by the upcoming ex-dividend date of March 10, 2025, demonstrates the company’s robust cash flow generation and its prioritization of shareholder returns. For Canadian investors seeking dependable income, CN Rail’s consistent dividend policy—supported by resilient underlying operations and disciplined capital management—provides reassurance even amid short-term market fluctuations.
Capital investment plans reiterate CN Rail’s dedication to network enhancements across Canada, with a committed CAPEX of approximately CAD 3.4 billion.
These ongoing infrastructure investments are strategically aligned to boost network capacity and operational reliability, reinforcing CN’s indispensable role in Canada’s intermodal logistics and bulk commodity supply chains. Such initiatives not only address long-term regional growth but also help position the company to capture incremental demand as Canadian export and import activities rebound.
The company’s market momentum is showing early signs of technical support, as shares approach key support levels near CAD 130-131 amid increased analyst focus.
While CN Rail’s shares have trended below major moving averages with a moderate one-week loss, the approach to significant support zones has attracted professional attention, suggesting potential for stabilization. With a five-year beta of just 0.83, the stock's lower volatility also makes it relatively appealing within the Canadian industrial equities landscape, encouraging longer-term accumulation as operational fundamentals remain sound.
Analyst consensus in Canada remains cautiously optimistic, citing the company’s strong network, diversified revenue streams, and capacity to weather cyclical slowdowns.
Recent expert commentaries published within the past week highlight CN Rail’s enduring geographic and operational advantages across Canadian markets, emphasizing its critical role in North American supply chains. The company’s proactive investments in efficiency and service reliability, combined with resilient pricing power, are viewed as offsetting the impact of softer economic conditions, supporting the view that recent share price weakness could present an attractive entry point for Canadian investors focused on quality and stability.
FAQ
What is the latest dividend for CN Rail stock?
CN Rail (Canadian National Railway) currently pays a quarterly dividend of CAD 0.8875 per share, translating to an annual payout of CAD 3.55 per share. The most recent ex-dividend date was March 10, 2025. This reliable dividend has supported a yield around 2.66%, and CN Rail has a consistent track record of dividend growth, reflecting its strong cash flow generation and shareholder-focused distribution policy.
What is the forecast for CN Rail stock in 2025, 2026, and 2027?
Based on the current TSX price of CAD 133.51, the forecasted values for CN Rail stock are CAD 173.56 at the end of 2025, CAD 200.27 at the end of 2026, and CAD 267.02 by the end of 2027. The rail sector is experiencing renewed optimism, fueled by network investments and increasing freight volumes as supply chains recover—factors that continue to support CN Rail’s long-term growth potential.
Should I sell my CN Rail shares?
Holding onto your CN Rail shares may be a sound approach for investors seeking long-term value. Despite recent price weakness, the company benefits from robust fundamentals: a critical North American rail network, steady dividend payments, and proven resilience through economic cycles. CN Rail’s experienced management and ongoing investments position it well for future gains as the transportation sector rebounds.
How are dividends from CN Rail stock taxed for Canadian investors?
Dividends from CN Rail are eligible for the Canadian dividend tax credit when held in a taxable account, which may lower the effective tax rate for most residents. If CN Rail is held in registered accounts such as a TFSA or RRSP, dividends and capital gains are sheltered from taxes. Importantly, there is no withholding tax on CN Rail dividends for Canadian residents when shares are held in domestic accounts.
What is the latest dividend for CN Rail stock?
CN Rail (Canadian National Railway) currently pays a quarterly dividend of CAD 0.8875 per share, translating to an annual payout of CAD 3.55 per share. The most recent ex-dividend date was March 10, 2025. This reliable dividend has supported a yield around 2.66%, and CN Rail has a consistent track record of dividend growth, reflecting its strong cash flow generation and shareholder-focused distribution policy.
What is the forecast for CN Rail stock in 2025, 2026, and 2027?
Based on the current TSX price of CAD 133.51, the forecasted values for CN Rail stock are CAD 173.56 at the end of 2025, CAD 200.27 at the end of 2026, and CAD 267.02 by the end of 2027. The rail sector is experiencing renewed optimism, fueled by network investments and increasing freight volumes as supply chains recover—factors that continue to support CN Rail’s long-term growth potential.
Should I sell my CN Rail shares?
Holding onto your CN Rail shares may be a sound approach for investors seeking long-term value. Despite recent price weakness, the company benefits from robust fundamentals: a critical North American rail network, steady dividend payments, and proven resilience through economic cycles. CN Rail’s experienced management and ongoing investments position it well for future gains as the transportation sector rebounds.
How are dividends from CN Rail stock taxed for Canadian investors?
Dividends from CN Rail are eligible for the Canadian dividend tax credit when held in a taxable account, which may lower the effective tax rate for most residents. If CN Rail is held in registered accounts such as a TFSA or RRSP, dividends and capital gains are sheltered from taxes. Importantly, there is no withholding tax on CN Rail dividends for Canadian residents when shares are held in domestic accounts.
