CNI Should I Buy
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Canadian National Railway Co (CNI) is not a strong buy at the moment for a beginner investor with a long-term strategy. While the company has shown solid financial performance in its latest quarter and is supported by a significant holding from the Gates Foundation, the technical indicators suggest the stock is currently overbought. Additionally, mixed analyst ratings and muted growth expectations for 2026 do not provide a compelling case for immediate investment. Holding off for a better entry point or further clarity on growth catalysts would be more prudent.
The stock is in a bullish trend, with the MACD histogram positively expanding and moving averages showing strength (SMA_5 > SMA_20 > SMA_200). However, the RSI at 82.024 indicates the stock is overbought, suggesting limited upside potential in the short term. The stock is trading near its resistance level (R1: 106.238), which could act as a barrier for further price increases.
Strong Q4 financial performance with revenue up 2.43% YoY, net income up 8.90% YoY, and EPS up 11.54% YoY.
Gates Foundation holds a significant stake (51.8 million shares), signaling confidence in the company's long-term prospects.
Bullish technical indicators such as MACD and moving averages.
Overbought RSI (82.
indicates limited short-term upside potential.
Analysts have lowered price targets, citing muted growth expectations for 2026 and economic uncertainty.
No significant hedge fund or insider trading trends to support a strong buy case.
Stock trend analysis suggests potential short-term downside (-3.15% in the next week).
In Q4 2025, Canadian National Railway reported revenue growth of 2.43% YoY to $4.464 billion, net income growth of 8.90% YoY to $1.248 billion, and EPS growth of 11.54% YoY to $2.03. Gross margin also improved by 4.28% YoY to 66.76%, indicating strong operational efficiency.
Analysts have mixed views on CNI. While some firms like TD Cowen and RBC Capital maintain a Buy or Outperform rating, others like UBS and Barclays have downgraded the stock or lowered price targets, citing muted growth expectations and economic uncertainty. The consensus reflects cautious optimism but lacks a strong near-term growth catalyst.
