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CNI Plans to Invest $30 Million in Tennessee for Rail Innovation

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Key Takeaways

  • CNI will invest $30M in Tennessee for infrastructure, tech, and network improvements in 2025.
  • Last year, CNI spent $36M in Tennessee on track maintenance and infrastructure enhancements.
  • CNI has made similar multi-state and multi-province rail investments to drive long-term growth.

Canadian National Railway Company (CNI - Free Report) is forging ahead with a $30 million investment in Tennessee, as part of its2025 capital investment program, signaling strong confidence in the region’s economic potential and the future of freight rail.

The investment is aimed at aiding infrastructure, technology, rolling stock equipment and network improvements. These investments are likely to guarantee the safe movement of goods and support long-term sustainable growth across CNI’s network in Tennessee.

Tracy Robinson, president and chief executive officer at CNI, stated, “We believe that investing in our network is about building for the future. Our continued infrastructure investment in Tennessee will help strengthen the resiliency and efficiency of our network across the state. Our focus remains on providing exceptional service to our customers and supply chain partners, supporting strong economic growth for North America and across communities where we operate.”

Last year, CNI spent almost $36 million in Tennessee to support track maintenance and strategic infrastructure initiatives. The bulk of the investment boosts the ongoing maintenance of infrastructure, including rail and tie replacements, grade crossing work and structure maintenance.

In backing its ambitious expansion, CNI shows no signs of slowing down. It’s doubling down on its core strengths — efficiency, innovation and infrastructure — while paving the way for long-term returns. Previously, CNI has made multiple similar investments for rail operations’ expansion in June, which include investments of $20 million in Indiana, $75 million in Mississippi, $170 million in Illinois and $80 million CAD in New Brunswick and Nova Scotia. Last month investments for rail operations’ expansion includes investments of $290 million CAD in Saskatchewan, $475 million CAD in Quebec, $165 million CAD in Manitoba, $165 million CAD in Manitoba, $510 million CAD in Alberta and $600 million CAD in Ontario. 

We believe such robust initiatives strengthen investors’ confidence and support the long-term performance of this Zacks Rank #3 (Hold) stock.

Stocks to Consider

Investors interested in the Transportation sector may also consider Copa Holdings (CPA - Free Report) and SkyWest, Inc. (SKYW - Free Report) ).

CPA currently sports a Zacks Rank #1 (Strong Buy).  You can see the complete list of today’s Zacks #1 Rank stocks here.

CPA has an expected earnings growth rate of 14.3% for the current year. The company has an impressive earnings surprise history. Its earnings outpaced the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average beat of 5.5%. Shares of CPA have risen 24.2% year to date.

SkyWest, founded in 1972, is based in St. George and operates regional jets for major U.S. airlines. SKYW is the holding company for SkyWest Airlines, SkyWest Charter and SkyWest Leasing, an aircraft leasing company. SKYW currently carries a Zacks Rank of 2 (Buy).

SKYW has an impressive earnings surprise track record, having surpassed the Zacks Consensus Estimate in each of the last four quarters. The average beat was 17.1%. The Zacks Consensus Estimate for current and next-year earnings has been revised upward over the past 60 days.


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