CP Rail & CNR: 2 TSX transport stocks to watch amid supply chain crisis

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CP Rail & CNR: 2 TSX transport stocks to watch amid supply chain crisis

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CP Rail & CNR: 2 TSX transport stocks to watch amid supply chain crisis
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Highlights

  • Transport stocks like Canadian Pacific Railway (TSX: CP) and Canadian National Railway (TSX: CNR) have gained notable investor interest in the wake of increasing supply chain challenges.
  • CP stock rose roughly 27 per cent in the last six months.
  • CNR stock swelled by 30 per cent in nine months.

Transport stocks like Canadian Pacific Railway (TSX: CP) and Canadian National Railway (TSX: CNR) have gained notable investor interest in the wake of increasing supply chain challenges.

Countries around the world, including Canada, have experienced significant supply chain disruptions triggered by COVID lockdowns, strikes, floods, the Russia-Ukraine war, etc.

Amid these issues, let us discuss the two TSX rail stocks.

Canadian Pacific Railway Limited (TSX: CP)

Canadian Pacific Railway, which had a two-day work stoppage in March, signed an agreement for binding arbitration with the Teamsters Canada Rail Conference (TCRC).

The C$ 96-billion market cap company also launched its interline train service from Lázaro Cárdenas to Chicago earlier this month.

The Calgary-based railway operator saw its top line hit C$ 2.04 billion in Q4 FY2021.

CP stock rose roughly 27 per cent in the last six months and clocked a new 52-week high by closing at C$ 104.21 apiece on Wednesday, March 30.

Also read: Cargojet (TSX: CJT) strikes strategic deal with DHL. Buy alert?

Canadian National Railway (TSX: CNR)

Canadian National Railway posted revenues of C$ 3.75 billion in Q4 FY2021, noting a year-over-year (YoY) rise of three per cent. The railroad’s diluted earnings per share spiked by 18 per cent YoY to C$ 1.69 apiece in the latest quarter.

CNR stock swelled by 30 per cent in nine months and closed at C$ 171.48 apiece on Wednesday, near its 52-week high of C$ 171.48 apiece (March 29).

 Canadian National Railway Company (TSX: CNR)’s Q4 FY2021 results

Bottomline

Canadian Pacific and Canadian National Railway are known to be among the top Canadian transportation companies, with railroad operations spread across North America.

Such companies could play a significant role in easing supply chain worries. However, investors should also consider potential threats impacting rail businesses before embarking on any investment opportunity.

Also read: AQN and NPI: 2 TSX clean stocks as Canada plans to cut emissions by 40%

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