Topic: How To Invest

The Successful Investor Hotline – Friday, January 29, 2021

Article Excerpt

CANADIAN PACIFIC RAILWAY LTD., $429.64, Toronto symbol CP, is our #1 Conservative Buy for 2021. Through their shares, investors tap a company shipping freight over a 22,000-kilometre rail network between Montreal and Vancouver. It also links to hubs in the U.S. Midwest and Northeast. In the three months ended December 31, 2020, the company’s revenue fell 2.8%, to $2.01 billion from $2.07 billion a year earlier. That also missed the consensus forecast of $2.07 billion. The lower revenues are mainly due to lower volumes of oil, coal, chemicals and consumer products due to the COVID-19 pandemic. That offset higher shipments of grain, forest products, fertilizers and automotive goods. However, thanks to CP’s strong focus on efficiency, its earnings in the quarter improved 4.1%, to $683 million from $656 million a year earlier. Due to fewer shares outstanding, per-share earnings gained 6.1%, to $5.06 from $4.77. Those figures exclude unusual items, among them a tax adjustment and a foreign exchange loss. On that basis, the latest…