Canadian National Railway (CNI) Shares Plunge 4.08% on Earnings Miss

Canadian National Railway (CNI) shares fell 4.08% today, reaching their lowest level since May 2025, with an intraday decline of 4.86%.

The strategy of buying CNI shares after they reached a recent low and selling after holding for one week resulted in a -13.89% return over the past five years. The benchmark return was 55.60%, indicating a significant underperformance of the strategy. The Sharpe ratio was -0.30, and the maximum drawdown was 0.00%, suggesting that the strategy had a high risk and potential for loss.

Analysts have been revising their forecasts and downgrading their ratings for CNR, leading to a pullback in the company's shares. This wave of negative sentiment has contributed to the recent decline in CNI's stock price.

Disappointing earnings reports have also played a significant role in the stock's volatility. The company's earnings for the quarter fell short of expectations, causing a notable drop in its share price.

CN's revenue for the quarter was $3.09 billion, which failed to meet the anticipated $3.16 billion, further exacerbating the stock's volatility. This revenue miss has added to the uncertainty surrounding the company's financial performance.

Additionally, the company reduced its guidance to mid to high single-digit EPS growth for 2025. The 2024-2026 outlook was suspended due to trade uncertainty, adding to the market's concerns about the company's future prospects.