Canadian National Railway (CNI) Shares Soar 2.06% on Strong Earnings

Canadian National Railway (CNI) shares surged 2.06% intraday, marking a two-day winning streak with a cumulative gain of 2.95%. The stock price reached its highest level since March 2025, reflecting strong market sentiment and investor confidence.

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 annualized return was 10.37%, slightly underperforming the market average. This suggests the strategy captured some of the market's growth but also indicated a relatively conservative approach, as the returns were not significantly higher than the broader market performance.

Canadian National Railway Co reported an 8% increase in earnings and improved operational metrics despite significant weather disruptions. This financial performance indicates the company's resilience and operational efficiency, which are likely to have positively influenced investor sentiment and stock price.

CN's strong Q1 2025 financial results, with a diluted EPS of C$1.85, an 8% increase year-over-year, and revenues up by 4%, further bolstered investor confidence. The company's improved operating ratio to 63.4% and maintained 2025 guidance targeting adjusted diluted EPS growth of 10-15% suggest a robust financial outlook, which may have contributed to the stock's upward momentum.

CN announced its second-quarter 2025 dividend payment, approved by the Board of Directors at C$0.8875 per common share, to be paid on June 30, 2025. This dividend declaration is likely to have attracted income-focused investors, further driving the stock price higher.

The election of 11 directors at CN's Annual Meeting of Shareholders, with strong shareholder approval, may have positively impacted investor sentiment. This strong support from shareholders indicates confidence in the company's leadership and strategic direction, which could have influenced the stock's performance.

Additionally, the announcements regarding CN's President and CEO Tracy Robinson's scheduled presentations at major industrial conferences may have affected investor perceptions and stock sentiment. These presentations provide an opportunity for the company to showcase its strengths and future plans, potentially attracting more investors and driving the stock price higher.