Topic: How To Invest

The Successful Investor Hotline – Friday, January 31, 2025

Article Excerpt

CANADIAN PACIFIC KANSAS CITY LTD., $115.50, Toronto symbol CP, is still a buy. The company took its current form in April 2023 when it acquired U.S.-based railway Kansas City Southern (KCS). CP paid $31 billion U.S. in cash and shares for KCS. At that time, CP investors owned 72% of the merged company, with KCS shareholders holding the remaining 28%. The new CPKC ships freight over a 32,190-kilometre rail network. That line runs mainly between Montreal and Vancouver, with links to hubs in the U.S. Midwest and Northeast. With the addition of KCS, the new company also connects with important hubs and ports on the U.S. Gulf Coast and in Mexico. The company’s revenue in the three months ended December 31, 2024, rose 2.6%, to $3.87 billion from $3.78 billion a year earlier. That matched the consensus forecast. That increase was mainly due to higher shipments of grain, crude oil and automotive goods. That offset lower shipments of coal, potash, metals and intermodal goods (containers…