Topic: How To Invest

The Successful Investor Hotline – Friday, October 23, 2020

Article Excerpt

CANADIAN PACIFIC RAILWAY LTD., $413.50, Toronto symbol CP, is still 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 COVID-19 pandemic continues to hurt CP’s volumes of crude oil, coal and metals. However, shipments of automobiles, grain and fertilizers are improving. As a result, the company’s revenue in the quarter ended September 30, 2020, fell 5.9%, to $1.86 billion from $1.98 billion a year earlier. Despite that drop, revenue still beat the consensus forecast of $1.85 billion. CP’s earnings in the quarter declined 12.5%, to $560 million from $640 million a year earlier. Due to fewer shares outstanding, per-share earnings fell at a slower rate of 10.6%, to $4.12 from $4.61. Those figures exclude unusual items, including a tax adjustment and a foreign exchange loss. On that basis, the latest earnings missed the consensus estimate of $4.23 a..