Two blue chips for safety-conscious gains

Article Excerpt

CP Rail is well positioned to keep weathering any COVID-19-related slowdowns or disruptions to its shipping markets. Metro is in a similarly strong position as it continues to build on its market position as an essential service during the pandemic. Both stocks are still buys. CANADIAN PACIFIC RAILWAY $92.52, is a buy. The company (Toronto symbol CP; shares outstanding: 629.7 million; Market cap: $84.3 billion; Rating: Above Average; Dividend yield: 0.8%) ships freight over a 23,700-kilometre rail network, mainly between Montreal and Vancouver. It also links to hubs in the U.S. Midwest and Northeast. The company is now in the process of merging with U.S.-based railway Kansas City Southern. The cash-and-shares deal was worth $28 billion U.S. CP expects to receive final regulatory approval in the fourth quarter of 2022. Meantime, CP reported a 1.4% revenue increase for the quarter ended December 31, 2021; it rose to $2.04 billion from $2.01 billion a year earlier. Higher shipments of oil, metals, potash and intermodal containers offset lower shipments of…