Back to top

Analyst Blog

This page is temporarily not available.  Please check later as it should be available shortly. If you have any questions, please email customer support at support@zacks.com or call 800-767-3771 ext.  9339.

Canadian Pacific Railway Limited (CP - Analyst Report) introduced faster and swifter intermodal rail connectivity between Toronto and Calgary. With the new service, customers can save 20 hours of travel time between the two locations compared to previous schedules.

This step will highly benefit its customers as the 2,112-mile rail track interlinking Toronto and Calgary can now be covered in 64 hours. Customers can thus reach their key markets in a shorter time span.

Prior to this, Canadian Pacific trimmed its transit time from Vancouver to Chicago and Vancouver to Toronto. These initiatives led to enhanced asset utilization and an improved supply-chain system, and in turn greater customer satisfaction.

We appreciate Canadian Pacific’s focus on upgrading its network capabilities through various measures including consolidating and repairing facilities that will enable it to operate longer and heavier trains as well as deliver on-time performance. The company projected long-term investment of nearly C$2.3 billion for 2011–2028.

Over the coming months, Canadian Pacific is poised to remain favorable owing to the strength in Industrial and Consumer business units. Growth driven by demand in the oil and gas market, mostly in the Bakken and Alberta oil sands transport business, will help the company to register high revenue.

However, the uncertainty in the global economy poses a major threat. Additionally, the weak outlook for the coal sector and less of forest product shipments will likely offset the positive trends in the housing and construction market. Apart from these, labor issues, commodity risk related to purchases of diesel fuel, competition from other Canadian and U.S. firms and currency fluctuations weigh on the company’s performance.

Canadian Pacific – which operates with the likes of Canadian National Railway Company (CNI - Analyst Report), Kansas City Southern (KSU - Analyst Report) and Union Pacific Corporation (UNP - Analyst Report) – has a Zacks Rank #3 (Hold rating).

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

Learn more

Start for as little as $4.50 per trade.

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
DIXIE GRP IN DXYN 15.84 +7.90%
BOFI HLDG IN BOFI 85.30 +4.97%
RAMBUS INC RMBS 12.31 +4.41%
VIPSHOP HOLD VIPS 148.73 +4.35%
NETFLIX INC NFLX 345.74 +4.32%