Two buys for your safety-conscious gains

Article Excerpt

CPKC and Metro are leading competitors in their respective markets. You can expect that to lower your risk if the economy should weaken. We see both stocks as buys. CANADIAN PACIFIC KANSAS CITY, $111.87, is a buy. The company (Toronto symbol CP; shares o/s: 933.3 million; Market cap: $102.9 billion; Rating: Above Average; Dividend yield: 0.7%) took its current form in April 2023 when it acquired U.S.-based railway Kansas City Southern (KCS) for $31 billion U.S. The new CPKC ships freight over a 32,190-kilometre rail network. That line runs mainly between Montreal and Vancouver, with links to hubs in the U.S. Midwest and Northeast. With the addition of KCS, the new company also connects with important hubs and ports on the U.S. Gulf Coast and in Mexico. The company’s revenue in the three months ended December 31, 2024, rose 2.6%, to $3.87 billion from $3.78 billion a year earlier. That matched the consensus forecast. Thanks partly to cost savings from the merger, earnings in the quarter before unusual…