Topic: How To Invest

The Successful Investor Hotline – Friday, October 25, 2024

Article Excerpt

CANADIAN PACIFIC KANSAS CITY LTD., $107.18, Toronto symbol CP, is still your #1 Conservative Buy for 2024. The company took its current form in April 2023 when it acquired U.S.-based railway Kansas City Southern (KCS). 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. Despite a short strike by conductor and railyard workers, as well as a derailment in North Dakota, the company’s revenue in the three months ended September 30, 2024, rose 6.3%, to $3.55 billion from $3.34 billion a year earlier. Even so, that missed the $3.68 billion consensus forecast. That increase…