Canadian National Railway (NYSE:CNI): A Defensive Investment with Growth Potential

Canadian National Railway (NYSE:CNI) is a major player in the North American rail industry, providing freight transportation services across Canada and the United States. As a key competitor to other rail giants like Canadian Pacific Kansas City and Union Pacific, CNI is closely watched by investors and analysts. The company is set to release its quarterly earnings on October 31, 2025, with Wall Street analysts estimating an earnings per share (EPS) of $1.28 and projected revenue of approximately $4.15 billion.

Despite the anticipation of lower revenues, CNI is expected to report a year-over-year increase in earnings for the quarter ending September 2025. The consensus estimate of $1.28 per share aligns with these expectations. The actual results compared to these estimates could significantly influence the stock's near-term price movement. If the earnings exceed expectations, the stock may rise, whereas a miss could lead to a decline.

CNI's financial metrics provide insight into its market valuation. The company has a price-to-earnings (P/E) ratio of approximately 18.04, indicating how the market values its earnings. Its price-to-sales ratio stands at about 4.78, reflecting the company's market value relative to its sales. Additionally, the enterprise value to sales ratio is around 5.98, suggesting how the company's total value compares to its sales.

The enterprise value to operating cash flow ratio is approximately 15.34, indicating the company's valuation in relation to its cash flow from operations. The earnings yield is about 5.54%, providing insight into the return on investment for shareholders. The debt-to-equity ratio is approximately 0.96, showing the proportion of debt used to finance the company's assets relative to shareholders' equity. Lastly, the current ratio is around 0.82, indicating the company's ability to cover its short-term liabilities with its short-term assets.

• The consensus price target for NYSE:CNI has decreased by 6.4% over the past year, indicating a more conservative outlook from analysts.
• Despite a predicted decline in earnings, the stock's 19% decline in New York is seen as a potential long-term buying opportunity.
• CNI reported mixed results in the third quarter, with challenges in the intermodal and automotive sectors, yet operational efficiency and cash returns remain strong.

The Canadian National Railway Company (NYSE:CNI) is a key player in the rail and transportation industry, operating an extensive network of 19,500 route miles across North America. The company serves various sectors, including petroleum, chemicals, and automotive products, and offers logistics and transportation management services. CNI competes with other major rail companies like Canadian Pacific Railway and Union Pacific.

The consensus price target for NYSE:CNI has seen a downward trend over the past year. Last year, analysts set the average price target at $128.23, but it has since decreased to $120 in the last quarter and last month. This 6.4% decline suggests a more conservative outlook from analysts, possibly due to recent earnings reports and economic conditions.

Analysts predict a decline in CNI's earnings in the upcoming financial report, as highlighted by Wells Fargo's price target of $130. Despite this, the stock's 19% decline in New York presents a potential long-term buying opportunity for investors. Concerns over currency risks and tariffs have contributed to the stock dip, but CNI's capital-intensive nature remains attractive for strong returns.

In the third quarter, CNI reported mixed results, with a slight earnings per share (EPS) beat and revenue growth. However, challenges in the intermodal and automotive sectors affected performance. Despite these hurdles, railroads like CNI can achieve strong returns through operational efficiency, fuel efficiency, and cash returns via buybacks and dividends.

• The consensus price target for NYSE:CNI has decreased by 6.4% over the past year, indicating a more conservative outlook from analysts.
• Despite a predicted decline in earnings, the stock's 19% decline in New York is seen as a potential long-term buying opportunity.
• CNI reported mixed results in the third quarter, with challenges in the intermodal and automotive sectors, yet operational efficiency and cash returns remain strong.

The Canadian National Railway Company (NYSE:CNI) is a key player in the rail and transportation industry, operating an extensive network of 19,500 route miles across North America. The company serves various sectors, including petroleum, chemicals, and automotive products, and offers logistics and transportation management services. CNI competes with other major rail companies like Canadian Pacific Railway and Union Pacific.

The consensus price target for NYSE:CNI has seen a downward trend over the past year. Last year, analysts set the average price target at $128.23, but it has since decreased to $120 in the last quarter and last month. This 6.4% decline suggests a more conservative outlook from analysts, possibly due to recent earnings reports and economic conditions.

Analysts predict a decline in CNI's earnings in the upcoming financial report, as highlighted by Wells Fargo's price target of $130. Despite this, the stock's 19% decline in New York presents a potential long-term buying opportunity for investors. Concerns over currency risks and tariffs have contributed to the stock dip, but CNI's capital-intensive nature remains attractive for strong returns.

In the third quarter, CNI reported mixed results, with a slight earnings per share (EPS) beat and revenue growth. However, challenges in the intermodal and automotive sectors affected performance. Despite these hurdles, railroads like CNI can achieve strong returns through operational efficiency, fuel efficiency, and cash returns via buybacks and dividends.