This Top Canadian Railway Stock Is Trading Around Its 5-Year Low

Investing in railways can be a good way to invest in a country's long-term growth. While there are high costs and maintenance and disruptions which can impact its operations in the short term, a railway operator should generally experience solid growth over longer periods, as the economy grows. And thus, investing in one, even amid economic uncertainty, may be a move that can pay off significantly in the future.

Canadian National Railway Company (TSX:CNR)(NYSE:CNI) is an excellent example of that. Uncertainty around tariffs have weighed on the stock, whose shares are down 17% in the past year. It's not only trading near its 52-week low, but the stock also hasn't been this cheap in multiple years, as it hovers around its five-year lows. It's currently trading at a fairly reasonable 18 times its trailing earnings, and it can make for a good value buy.

The company released its latest earnings numbers on July 22 and they weren't too bad with revenue down by just 1%, totaling $4.3 billion in the most recent quarter. And its adjusted operating income was flat. The business has been focusing on keeping its costs down to navigate what it calls a“challenging external environment.”

While the short term may indeed be challenging, investing in Canadian National Railway at a time when the market is bearish on the stock could set you up for some great returns down the road. And a great incentive to simply hang on and wait is that the stock offers a solid dividend that yields 2.7%.

It may take some time for this railway stock to recover, but now may be a great time to invest in it.

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