CP Rail is a better buy for investors right now

Article Excerpt

CP Rail is well positioned to weather any COVID-19-related slowdowns or disruptions to its shipping markets. As is Great-West Lifeco, which remains an insurance leader. Note, however, that investor worries about low interest rates and the coronavirus will weigh on Great-West’s investment portfolio and its outlook. CANADIAN PACIFIC RAILWAY $345.32, is a buy. The company (Toronto symbol CP; shares outstanding: 135.6 million; Market cap: $46.8 billion; Rating: Above Average; Dividend yield: 1.0%) operates a 22,000-kilometre rail network between Montreal and Vancouver. It also links to rail hubs in the U.S. Midwest and Northeast. In the quarter ended March 31, 2020, which captures the start of the Canada’s COVID-19 shutdown, CP’s overall revenue rose to a record $2.04 billion. That’s up 15.6% from $1.77 billion a year earlier. The higher revenue was mainly due to rising shipments of grain, fertilizers, crude oil, metals and automotive products. Earnings before unusual items soared 54.8%, to $607 million from $392 million a year earlier. With fewer shares outstanding, per-share earnings rose…

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