Topic: How To Invest

The Successful Investor Hotline – Friday, January 31, 2020

Article Excerpt

CANADIAN PACIFIC RAILWAY LTD., $351.55, Toronto symbol CP, is our #1 Conservative Buy for 2020. Through their shares, investors tap a company shipping freight over its 22,000-kilometre rail network between Montreal and Vancouver. It also links to hubs in the U.S. Midwest and Northeast. In the quarter ended December 31, 2019, CP’s revenue gained 3.1%, to $2.07 billion from $2.01 billion a year earlier. That beat the consensus forecast of $2.02 billion. The higher revenue was mainly due to rising shipments of crude oil, automotive products and grain. CP’s earnings in the quarter gained 1.2%, to $656 million from $648 million a year earlier. Due to fewer shares outstanding, per-share earnings rose at a faster rate of 4.8%, to $4.77 from $4.55. Those figures exclude unusual items, including a tax adjustment and a foreign exchange loss. On that basis, the latest earnings beat the consensus estimate of $4.66. Partly due to higher labour costs, CP’s operating ratio in the quarter worsened to 57.0% from 56.5%….

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