Canadian National Railway Company (CNI): Among The Best Railroad Stocks To Buy According To Billionaires

Yahoo

28-04-2025

We recently published a list of . In this article, we are going to take a look at where Canadian National Railway Company (NYSE:CNI) stands against other best railroad metals stocks to buy according to billionaires.
The trade war initiated by President Trump will force freight railroads to position themselves for the chain reaction. Tariffs on Mexico, Canada, China, and Europe will set in and shake up the trade network. In 2024 alone, American railroads moved $203.1 billion worth of goods across the Canadian and Mexican borders. The rail sector remains a vital economic engine, generating $233.4 billion in output and supporting approximately 750,000 jobs in 2023. At the same time, railroads also demonstrated their commitment to long-term growth by reinvesting $26.8 billion into infrastructure last year.
While much of the attention has been on autos and consumer goods, chemicals are a critical piece of the puzzle. The United States exported over $28 billion in chemicals to Canada last year and imported around $25 billion, making Canada the top supplier of chemical imports. Canada also plays a strategic role in the US critical minerals supply chains, EV battery production, and energy imports, including crude oil, natural gas, and electricity. Industry experts warn that new tariffs could drive up costs across sectors, from chemicals used in drinking water treatment to construction materials like lumber, creating potential inflationary pressure.
Despite the risks, Wall Street remains cautiously optimistic. Analysts believe the supply chain could adapt, especially for goods like lumber that already face steep tariffs. Early signs suggest the administration is moving deliberately, giving companies time to adjust strategies. Railroads and freight remain central players, particularly with Mexico's auto exports, 70% of which move by rail, and chemicals are heavily reliant on cross-border logistics. Longer term, a trade war could test the strength of USMCA relationships and ripple across North American supply chains, but for now, businesses are preparing while the administration signals a phased approach.
In November 2024, Joe Hinrichs, CEO of a leading US rail company, shared an insight with CNBC's Jim Cramer that still holds true today:
'From our standpoint, actually, as long as it's coming to the U.S., we're going to move it somewhere. If tariffs change the trade portfolio — as long as the economy's growing, we'll be a part of it.'
Warren Buffett is a major investor in the railroad industry and has commented that the railroad industry, including BNSF, is a "better business now" than it was in the past. With that outlook in mind, let's take a look at some of the best railroad stocks that billionaires are piling into.
A driverless train traversing vast countryside, illustrating the companies long-distance rail transport services.
For this article, we focused on making a list of all railroad and railcar stocks publicly listed in the United States. Using Insider Monkey's Q4 2024 database, we examined billionaire sentiment for each stock and selected the 10 most popular ones. The stocks are ranked in ascending order based on the number of billionaire investors as of Q4 2024.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
Number of Billionaire Investors: 12
Stake Value of Billionaire Holdings: $9,047,607,042
Canadian National Railway Company (NYSE:CNI) is a transportation company operating in the US and Canada, offering rail transport, intermodal solutions, trucking, and logistics. CNI's offerings include custom brokerage, specialized cargo handling, temperature-controlled shipments, and oversized load services. It is one of the best railroad stocks to buy, with 12 billionaire investors backing the company.
On January 31, JPMorgan analyst Brian Ossenbeck maintained an Overweight rating on Canadian National Railway Company (NYSE:CNI), but trimmed the price target from C$179 to C$174. CNI faced labor and weather challenges in 2024, missing Q4 expectations. Despite this, JPMorgan remains optimistic for 2025, citing easier comps and supportive tailwinds. The company is still seen as a strong player with less downside risk than peers.
Canadian National Railway Company (NYSE:CNI) on January 30 raised its quarterly dividend by 5% for 2025, marking the 29th straight year of increases. CNI paid a C$0.8875 per share dividend on March 31. The company also announced a new buyback plan, allowing it to repurchase up to 20 million shares between February 4, 2025, and February 3, 2026.
Overall, CNI ranks 6th among the best railroad stocks to buy according to billionaires. While we acknowledge the potential of CNI as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than CNI but that trades at less than 5 times its earnings, check out our report about this .
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Disclosure: None. This article is originally published at Insider Monkey.