Canadian Pacific Railway Limited (CP - Free Report) completed its previously announced (on Nov 20, 2019) acquisition of Central Maine & Quebec Railway (CMQ). However, the buyout is pending approval from the Surface Transportation Board in the United States.
Apart from strengthening the company’s presence in eastern United States, the buyout will enhance customer experience by providing a smooth, secure and efficient access to ports at Searsport, ME, and to Saint John, New Brunswick, via Eastern Maine Railway Company (EMRY) and New Brunswick Southern Railway (NBSR).
Prudent cost management owing to the precision scheduled railroading model is aiding Canadian Pacific to generate significant earnings growth. In fact, the company’s operating ratio (operating expenses as a percentage of revenues), a key measure of efficiency, has been improving over the last several quarters owing to its cost-control measures.
However, poor harvest weather in Canada and the U.S.-China trade dispute have exerted pressure on the company’s grain volumes. In fact, Canadian Pacific witnessed weak volumes in the fourth quarter due to macroeconomic headwinds and geopolitical tensions.
Zacks Rank & Key Picks
Canadian Pacific carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader Transportation sector are Ryanair Holdings plc (RYAAY - Free Report) , Allegiant Travel Company (ALGT - Free Report) and GATX Corporation (GATX - Free Report) . While Ryanair sports a Zacks Rank #1 (Strong Buy), Allegiant and GATX carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of Ryanair, Allegiant and GATX have rallied more than 21%, 67% and 17% in a year’s time, respectively.
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Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Canadian Pacific Railway Limited (CP - Free Report) completed its previously announced (on Nov 20, 2019) acquisition of Central Maine & Quebec Railway (CMQ). However, the buyout is pending approval from the Surface Transportation Board in the United States.
Apart from strengthening the company’s presence in eastern United States, the buyout will enhance customer experience by providing a smooth, secure and efficient access to ports at Searsport, ME, and to Saint John, New Brunswick, via Eastern Maine Railway Company (EMRY) and New Brunswick Southern Railway (NBSR).
Prudent cost management owing to the precision scheduled railroading model is aiding Canadian Pacific to generate significant earnings growth. In fact, the company’s operating ratio (operating expenses as a percentage of revenues), a key measure of efficiency, has been improving over the last several quarters owing to its cost-control measures.
However, poor harvest weather in Canada and the U.S.-China trade dispute have exerted pressure on the company’s grain volumes. In fact, Canadian Pacific witnessed weak volumes in the fourth quarter due to macroeconomic headwinds and geopolitical tensions.
Zacks Rank & Key Picks
Canadian Pacific carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader Transportation sector are Ryanair Holdings plc (RYAAY - Free Report) , Allegiant Travel Company (ALGT - Free Report) and GATX Corporation (GATX - Free Report) . While Ryanair sports a Zacks Rank #1 (Strong Buy), Allegiant and GATX carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of Ryanair, Allegiant and GATX have rallied more than 21%, 67% and 17% in a year’s time, respectively.
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers “Most Likely for Early Price Pops.”
Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.6% per year. So be sure to give these hand-picked 7 your immediate attention.
See 7 handpicked stocks now >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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