If you’re looking for a reliable Canadian stock to add to your TFSA or RRSP portfolio, this might be the opportunity you’ve been waiting for. Canadian National Railway (TSX:CNR) has seen its stock drop by nearly 28% from its all-time high, and many investors are now wondering—is this the right time to buy and hold for decades?
CNR Stock Price: Trading Near 4-Year Lows
At the time of writing, CNR shares trade around $130, significantly down from their peak of $180 last year. That’s a steep decline, and it puts the stock back to price levels last seen during the market crash of 2020.
But seasoned investors know that great companies on temporary dips often turn into long-term winners. This could be one of those moments.
Why Canadian National Railway (CNR) Matters
CNR operates a vast 20,000-mile rail network connecting Canada’s Atlantic and Pacific coasts to the Gulf Coast in the United States. With over 300 million tons of cargo moved annually—including grain, crude oil, coal, fertilizers, and finished goods—CN plays a critical role in North American supply chains.
In other words, it’s not just a railway. It’s the economic backbone of two countries.
U.S. Exposure = Built-In Growth for Canadian Investors
One of CNR’s most attractive features is its revenue diversification. While it’s a Canadian company, a significant portion of its earnings come from the United States. This provides natural currency hedging—when the U.S. dollar strengthens, CN’s American revenue becomes more valuable in Canadian terms.
This cross-border exposure gives Canadian investors a built-in growth engine that’s rare in traditional TSX-listed companies.
2024 Challenges and the 2025 Outlook
- So, what caused the recent drop?
- Labour strikes at CN and major Canadian ports in 2024 disrupted operations.
- Alberta wildfires severely impacted freight movement.
- These issues increased operational costs and pushed some customers to alternate transport methods.
- As a result, 2024 earnings dipped 5%, although revenues still came in slightly higher than 2023.
Now in 2025, the spotlight has shifted to trade uncertainty. Tariff negotiations between the U.S., Canada, and other trade partners have raised fears of a slowdown or recession. CN has already lowered its 2025 earnings outlook, expecting less than 10% EPS growth, compared to the earlier estimate of up to 15%.
Long-Term Upside: Is the Worst Already Priced In?
Right now, the stock appears to reflect a worst-case scenario. But here’s the thing—trade deals get done. They may take time and come with near-term pain, but governments don’t want economic collapse, and eventually, businesses adapt.