Topic: How To Invest

What is Pat’s commentary for the week of January 11, 2022

Article Excerpt

CP Rail has been one of our favourite stocks over the past two decades. In fact, we made it the #1 Conservative Buy for our flagship newsletter The Successful Investor in 2019, 2020 and 2021. Our confidence has been rewarded: In the past three years, the stock has gained an impressive 88.9% compared to just 41.7% for the S&P/TSX Composite Index. We feel CP’s merger with U.S.-based railway Kansas City Southern will push the stock even higher over the next few years. While big takeovers like this always entail risk, the purchase will greatly extend CP’s reach in the U.S. and Mexico. As well, having direct rail routes between key hubs and ports will let the company take better advantage of the new U.S.-Mexico-Canada (USMCA) trade deal, which replaced the old North American Free Trade Agreement (NAFTA). The merger will also help it compete with U.S. trucking firms. I asked our Successful Investor research department to draw up this Inner Circle Spotlight report…

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