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Canadian Pacific (CP) Sets Record in 2020-2021 Crop Year
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Canadian Pacific Railway Limited (CP - Free Report) sets a fourth consecutive record with respect to movement of Canadian grain and grain products in 2020-21 crop production year. In the said time frame, the railroad operator moved 30.62 million metric tonnes (MMT) of Canadian grain and grain products, up 3.7% from last year's record. Including grain moved in containers, Canadian Pacific moved a total of 31.21 MMT, up 3.4% from 2019-20 crop year.
The record grain shipment can be primarily attributed to the efficiency of the 8,500-foot High Efficiency Product (HEP) train model as well as investments made by Canadian Pacific’s customers. An 8,500-foot HEP train can carry in excess of 40% more grain than the 7,000-foot train model when combined with the additional capacity of the railroad's new high-efficiency hopper cars. By the end of 2021, more than 40% of the served unit train loaders will be 8,500-foot HEP qualified, increasing capacity and efficiency in the grain supply chain.
In line with the objective of investing in its grain fleet, Canadian Pacific continues to take delivery of high-capacity grain hopper cars as part of a half-billion-dollar commitment in 2018 to purchase 5,900 of the newest-generation railcars. The new cars can carry 10% more grain by weight and 15% more by volume than the older cars. Currently, the railroad operator has more than 4,600 owned and leased new high-capacity hopper cars in active service, with plans to add 1,600 more by the end of 2021.
The upbeat performance with respect to grain transportation is likely to help Canadian Pacific’s top-line growth in the coming quarters.
Zacks Rank & Stocks to Consider
Canadian Pacific currently carries a Zacks Rank #4 (Sell).
Long-term expected earnings per share (three to five years) growth rate for Knight-Swift, Landstar and Herc Holdings is pegged at 15%, 12% and 49.2%, respectively.
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Canadian Pacific (CP) Sets Record in 2020-2021 Crop Year
Canadian Pacific Railway Limited (CP - Free Report) sets a fourth consecutive record with respect to movement of Canadian grain and grain products in 2020-21 crop production year. In the said time frame, the railroad operator moved 30.62 million metric tonnes (MMT) of Canadian grain and grain products, up 3.7% from last year's record. Including grain moved in containers, Canadian Pacific moved a total of 31.21 MMT, up 3.4% from 2019-20 crop year.
The record grain shipment can be primarily attributed to the efficiency of the 8,500-foot High Efficiency Product (HEP) train model as well as investments made by Canadian Pacific’s customers. An 8,500-foot HEP train can carry in excess of 40% more grain than the 7,000-foot train model when combined with the additional capacity of the railroad's new high-efficiency hopper cars. By the end of 2021, more than 40% of the served unit train loaders will be 8,500-foot HEP qualified, increasing capacity and efficiency in the grain supply chain.
In line with the objective of investing in its grain fleet, Canadian Pacific continues to take delivery of high-capacity grain hopper cars as part of a half-billion-dollar commitment in 2018 to purchase 5,900 of the newest-generation railcars. The new cars can carry 10% more grain by weight and 15% more by volume than the older cars. Currently, the railroad operator has more than 4,600 owned and leased new high-capacity hopper cars in active service, with plans to add 1,600 more by the end of 2021.
The upbeat performance with respect to grain transportation is likely to help Canadian Pacific’s top-line growth in the coming quarters.
Zacks Rank & Stocks to Consider
Canadian Pacific currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the broader Zacks Transportation sector are Knight-Swift Transportation Holdings Inc. (KNX - Free Report) , Landstar System, Inc. (LSTR - Free Report) and Herc Holdings Inc. (HRI - Free Report) . Knight-Swift and Landstar carry a Zacks Rank #2 (Buy), while Herc Holdings sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term expected earnings per share (three to five years) growth rate for Knight-Swift, Landstar and Herc Holdings is pegged at 15%, 12% and 49.2%, respectively.