Topic: How To Invest

The Successful Investor Hotline – Friday, January 12, 2024

Article Excerpt

CANADIAN PACIFIC KANSAS CITY LTD., $103.81, Toronto symbol CP, is your #1 Conservative Buy for 2024. This is the sixth year in a row we’ve picked CP as our #1 Conservative stock. In that time, the stock has jumped 106.8%. We feel the stock will continue to rise over the next few years as the company realizes more of the benefits from its April 2023 acquisition of U.S.-based railway Kansas City Southern. CP paid $31 billion U.S. in cash and shares for KCS. At that time, CP investors owned 72% of the merged company, with KCS shareholders holding the remaining 28%. 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. So far, the merger has let CPKC cut its annual costs by $350 million…