Canadian National Railway: I Loved The Quarter, But Downgraded The Stock

Canadian National Railway Company delivered strong Q2 results, with 11% revenue and EPS growth, driven by price discipline and volume increases. CNI's operational efficiency improved despite some minor setbacks, and management raised EPS guidance based on internal execution rather than macro tailwinds. The strategic agreement with Union Pacific mitigates merger risks, expands reach into Mexico, and enhances long-term growth opportunities. Following a ~40% share price increase, I downgrade CNI to a solid Hold due to reduced margin of safety and an implicit IRR of 7.7%.