Here's Why You Should Avoid Canadian National Stock Now

Core Viewpoint - Canadian National Railway Company (CNI) is facing multiple challenges that make it an unattractive investment option [1] Earnings Estimates - The Zacks Consensus Estimate for CNI's 2025 earnings has been revised downward by 6.9% over the past 90 days, indicating a lack of confidence from brokers [1] Price Performance - CNI's shares have declined by 25.4% over the past year, significantly underperforming the transportation-rail industry, which saw a decline of 13.4% [2] Zacks Rank and Style Score - CNI currently holds a Zacks Rank of 4 (Sell) and has a Value Score of D, reflecting its unattractiveness [5] Earnings Surprise History - CNI has a poor earnings surprise history, missing the Zacks Consensus Estimate in three of the last four quarters, with an average miss of 2.54% [5] Operational Challenges - The company is facing supply-chain issues, network fluidity challenges, and weak intermodal scenarios, which are negatively impacting performance [6] - Rail network problems, including locomotive and crew shortages, along with rising operating expenses (up 5.5% year-over-year for 2024), are significant challenges [6] Financial Health - CNI has a debt-laden balance sheet and a current ratio of 0.66, indicating insufficient cash to meet short-term obligations [7] Industry Context - CNI belongs to an industry with a Zacks Industry Rank of 157 out of 248, placing it in the bottom 36% of Zacks industries, which can adversely affect stock performance [9]