Topic: How To Invest

The Successful Investor Hotline – Friday, June 5, 2020

Article Excerpt

CANADIAN PACIFIC RAILWAY LTD., $357.47, 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. The company shipped a record 2.80 million tonnes of Canadian grain in May 2020. That beat its previous May record of 2.50 million tonnes in 2014. To help handle those rising volumes, CP is buying 5,900 new “hopper” railcars between 2019 and 2022 for shipping grain. Those cars carry up to 15% more than the older models. The company now has over 2,700 of those hopper cars in service. It is also investing in new facilities to speed up the loading and unloading of grain. The stock is up 42% since falling to $252 on March 18, 2020, due to the COVID-19 pandemic. CP now expects its earnings per share for all of 2020 to equal 2019’s $16.44. The stock trades…

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