Topic: How To Invest

The Successful Investor Hotline – Friday, July 24, 2020

Article Excerpt

CANADIAN PACIFIC RAILWAY LTD., $367.70, Toronto symbol CP, is still 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. The COVID-19 pandemic continues to weigh on CP’s freight volumes. As a result, its revenue in the quarter ended June 30, 2020, fell 9.4%, to $1.79 billion from $1.98 billion a year earlier. Despite that drop, revenue still beat the consensus forecast of $1.78 billion. During the quarter, the railway shipped more grain, potash and fertilizer. However, volumes declined for forest and automotive products, energy, coal, and industrial and consumer products. CP’s earnings in the quarter declined 8.1%, to $553 million from $602 million a year earlier. Due to fewer shares outstanding, per-share earnings fell at a slower rate of 5.3%, to $4.07 from $4.30. Those figures leave out unusual items, including a tax adjustment and a foreign exchange loss…

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