Canadian National Railway Company (TSX:CNR)(NYSE:CNI) has fallen more than 8% in the last month as a rail blockade has led to many of its trains stopped on its tracks, paving the way for what’s likely an underwhelming quarter when the company goes to report its results for the first three months of 2020.
Although a draft agreement was in place Monday between the government and the Wet’suwet’en, the blockades were still in place. However, the hope is that once the details of the agreement are reviewed that there will be an end to the conflict.
It’s hard to see the situation dragging on for much longer given the impact on the economy, and the good news for CN investors is that means that the potential effect on the railway operator’s results may be limited to just one quarter.
The stock is currently trading right around its 52-week low and now may be an attractive time for investors to buy shares of CN while it’s this cheap.
News of the blockades being lifted will likely give CN a boost and given that they’ve been in place for weeks, investors and analysts will likely be expecting a weaker-than-normal quarterly results.
The bigger concern for investors, however, may be another factor that may weigh on the economy – the coronavirus. A slowdown in the global markets could also cause problems for CN Rail as it could lead to fewer items being transported across the country.
And so while this latest decline may appear to make CN Rail a cheap stock, investors may want to wait a little longer as the stock may continue to fall even further until fears surrounding the coronavirus subside.
