Canadian National Railway (CNI) Drops 0.96% Despite 18% Free Cash Flow Surge

Canadian National Railway (CNI) shares experienced a slight decline of 0.96% today, reaching their highest level since March 2025 with an intraday gain of 0.61%.

The strategy of buying CNI shares after they reached a recent high and holding for 1 week yielded moderate returns over the past 5 years. The CAGR was 7.4%, slightly underperforming the market benchmark. This suggests that while the strategy provided some growth, it may not have been the most optimal approach, especially considering the higher market returns during the same period.

Susquehanna recently upgraded Canadian National Railway's rating from "neutral" to "positive," setting a price target of $120.00. This upgrade reflects a favorable outlook for the company's stock, potentially influencing investor sentiment and driving stock price movements.

The Supreme Court's dismissal of challenges to the CN Rail hub project in Milton, Ontario, has paved the way for a $250-million project to proceed. This development is expected to enhance the company's operational capacity, which could boost investor confidence and positively impact the stock price.

Canadian National Railway Company reported an 18% increase in free cash flow, reaching $626 million for the quarter. This strong financial performance suggests that the company is in a robust financial position, which could attract more investors and contribute to positive stock movements.