Topic: How To Invest

The Successful Investor Hotline – Friday, July 30, 2021

Article Excerpt

CANADIAN PACIFIC RAILWAY LTD., $92.64, Toronto symbol CP, is still our #1 Conservative Buy for 2021. CP ships freight over a 22,000-kilometre rail network between Montreal and Vancouver. It also links to hubs in the U.S. Midwest and Northeast. The company reported record revenue for the second quarter of 2021, as the re-opening of the economy led to higher shipments of coal, automotive products, metal, minerals and intermodal containers that travel by rail, ship and truck. In the three months ended June 30, 2021, CP’s revenue gained 14.6%, to $2.05 billion from $1.79 billion a year earlier. That matched the consensus forecast. If you exclude unusual items, overall earnings in the quarter jumped 24.6%, to $689 million from $553 million. Due to fewer shares outstanding, earnings per share gained 27.2%, to $1.03 from $0.81 (all per-share figures adjusted for a 5-for-1 stock split in May 2021). That beat the consensus estimate of $1.01. Due to higher fuel and labour costs, CP’s operating ratio worsened to…