|Bid||175.51 x 200|
|Ask||175.60 x 100|
|Day's Range||175.18 - 176.39|
|52 Week Range||143.44 - 188.80|
|PE Ratio (TTM)||13.97|
|Forward Dividend & Yield||1.80 (1.01%)|
|1y Target Est||N/A|
Trump’s pro-growth agenda in the form of a 14% cut in corporate tax and deregulation have proved major turning points for the US economy. The corporate tax cuts from 35% to 21% could result in huge savings for US companies including railroads (IYJ). Note that US railroads such as Norfolk Southern (NSC) and CSX (CSX) receive almost 100% of their revenue from the United States. Thus, a 14% reduction in the corporate tax rate would significantly boost their cash flows.
US Class I railroads’ (XLI) intermodal segments compete directly with trucking (WERN) companies. In the last two years, shippers have been shying away from the rail intermodal for their shipping needs. During those times, shippers prefer trucking companies for medium to long-haul freight services.
2016 and 2017 were particularly bad for coal traffic due to the strength in the US dollar, international markets flooded with coal, and most importantly, low natural gas prices. The natural gas prices were low due to a slump in crude oil prices, which led to a switch to natural-gas-fired power plants from coal-fired power plants. Canadian Pacific Railway (CP) earned 9.9% of revenues from its coal business, whereas the commodity’s share in total carloads was 11.6% in 2017.
The Zacks Analyst Blog Highlights: Union Pacific, Kansas City, Canadian Pacific, CSX and Norfolk
The turnaround of Freight Railroad industry can be attributed to an improvement in the coal-related scenario and a boost in intermodal volume.
Canadian National Railway (CNI) is considered by some as the best-run North American rail carrier in the last ten years. As a result, customers’ inventories piled up and created bottlenecks at CNI’s rail terminals. To add fuel to the fire, on March 7, 2018, its competitor Canadian Pacific Railway (CP) published a press release that said its network fluidity was rising every day.
Assessing Canadian Pacific Railway Limited’s (TSX:CP) performance as a company requires looking at more than just a years’ earnings data. Below, I will run you through a simple sense checkRead More...
Canadian Pacific Railway (CP) is Canada’s second-largest railroad after Canadian National Railway (CNI). In Week 8, which ended February 24, 2018, CP posted a 5.1% loss in its carload traffic. Compared with rival CNI’s carload loss, CP’s loss was higher in the eighth week of 2018.