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Is Canadian Pacific Kansas City Limited (CP) Stock Outpacing Its Transportation Peers This Year?

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For those looking to find strong Transportation stocks, it is prudent to search for companies in the group that are outperforming their peers. Canadian Pacific Kansas City (CP - Free Report) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? Let's take a closer look at the stock's year-to-date performance to find out.

Canadian Pacific Kansas City is a member of our Transportation group, which includes 114 different companies and currently sits at #5 in the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.

The Zacks Rank is a proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. Canadian Pacific Kansas City is currently sporting a Zacks Rank of #1 (Strong Buy).

Within the past quarter, the Zacks Consensus Estimate for CP's full-year earnings has moved 3.8% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.

According to our latest data, CP has moved about 15.6% on a year-to-date basis. Meanwhile, the Transportation sector has returned an average of 5.5% on a year-to-date basis. This means that Canadian Pacific Kansas City is outperforming the sector as a whole this year.

Heartland Express (HTLD - Free Report) is another Transportation stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 28.6%.

The consensus estimate for Heartland Express' current year EPS has increased 428.6% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).

Breaking things down more, Canadian Pacific Kansas City is a member of the Transportation - Rail industry, which includes 9 individual companies and currently sits at #47 in the Zacks Industry Rank. Stocks in this group have gained about 18.1% so far this year, so CP is slightly underperforming its industry this group in terms of year-to-date returns.

On the other hand, Heartland Express belongs to the Transportation - Truck industry. This 12-stock industry is currently ranked #50. The industry has moved +16.5% year to date.

Going forward, investors interested in Transportation stocks should continue to pay close attention to Canadian Pacific Kansas City and Heartland Express as they could maintain their solid performance.

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