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Canadian Pacific (CP) Signs Multi-Year Agreement With CMA CGM

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Canadian Pacific Railway Limited (CP - Free Report) announced a new multi-year agreement with CMA CGM Group, a world leader in shipping and logistics. With this, CP will become CMA CGM's primary rail provider in Canada, servicing the ports of Vancouver, Montreal and Saint John.

CP executive vice-president and chief marketing officer John Brooks stated, “CP is proud to provide CMA CGM with safe and reliable service that includes the shortest route miles to key markets. CP's dedication to best-in-class service is enabling supply-chain recovery that will drive future growth opportunities for the North American economy”.

Canadian Pacific boasts world-class access to the Port of Vancouver and Port of Montreal combined with its strategic connection to Port Saint John via New Brunswick Southern Railway. Such a fantastic communication network will enable CP to move the majority of CMA CGM's freight from the Canadian ports to the key Canadian and US Midwest inland markets.

This deal with CMA CGM creates natural synergies, supporting sustainability and innovation.

Zacks Rank & Key Picks

Canadian Pacific currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Some better-ranked stocks in the broader Zacks Transportation sector are Ryder System, Inc. (R - Free Report) , C.H. Robinson Worldwide, Inc. (CHRW - Free Report) and GATX Corporation (GATX - Free Report) .

Ryder has a trailing-four quarter surprise of 48.2%, on average, with its earnings having surpassed the Zacks Consensus Estimate in all the last four quarters.

R is benefiting from improving economic and freight conditions in the United States. Revenues at all segments grew (on higher rental revenues, new business and favorable pricing) in first-quarter 2022. R currently sports a Zacks Rank #1.

The long-term (three-to-five years) expected earnings per share (EPS) growth rate for C.H. Robinson is pegged at 9%. Improving freight market conditions are aiding CHRW. In first-quarter 2022, the top line improved 41.8% owing to favorable truckload pricing for customers and handsome profits in ocean freight.

Driven by the positives, the stock has rallied 13.5% in the past year.  CHRW currently carries a Zacks Rank #2 (Buy).

GATX has a trailing-four quarter surprise of 40.1%, on average, with its earnings having surpassed the Zacks Consensus Estimate in all the last four quarters. The gradual improvement in the North American railcar leasing market is a huge positive for GATX.

Driven by the upsides, the stock has risen 8.5% in the past year.  GATX currently has a Zacks Rank of 2.