Acquisition will push CP higher

Article Excerpt

This is the fourth year in a row that we’ve selected CP Rail as your #1 Conservative Buy. We’re particularly excited as the company’s upcoming merger with U.S.-based railway Kansas City Southern could spur the stock higher for many years to come. While big acquisitions are always risky, adding KCS 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 better compete with other railways and trucking firms. CP’s added scale will also help the company profit as the North American economy continues to rebound from the COVID-19 pandemic and supply chain disruptions further ease. CANADIAN PACIFIC RAILWAY LTD. $104 is your #1 Conservative Buy for 2022. The company (Toronto symbol CP; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 929.9 million; Market cap: $96.7 billion; Price-to-sales ratio: 10.5; Dividend yield: 0.7%; TSINetwork Rating: Above Average; www.cpr.ca) transports freight over a 23,700-kilometre rail network in Canada as well as…