In this article we discuss the 5 best railroad stocks to buy in 2021. If you want to read our detailed analysis of the railroad industry, go directly to the 10 Best Railroad Stocks to Buy in 2021.
Best Railroad Stocks to Buy in 2021
5. Canadian Pacific Railway Limited (NYSE: CP)
Market Cap: $52.588 billion
Number of Hedge Fund Holders: 24
Canadian Pacific Railway Limited (NYSE: CP) operates a transcontinental freight railway in Canada and the United States. The company provides rail and intermodal transportation services through a rail network of 13,000 miles expanding across several business centers in British Columbia, Quebec, and the Northeast and Midwest regions of the US. Canadian Pacific Railway Limited was founded in 1881 and is headquartered in Calgary, Canada. With a market cap of $52.588 billion, Canadian Pacific Railway Limited (NYSE: CP) has earned the 5th spot in Insider Monkey’s 10 best railroad stocks to buy in 2021 list.
In the earnings report for the first quarter of 2021, CP reported a revenue of $1.96 billion with a diluted EPS of $4.50 which is a 51% increase from $2.98 in the preceding year. Reported OR increased by 100 basis points from 59.2% in Q1 of 2020 to 60.2% in Q1 of 2021. This strong momentum in the beginning of fiscal year 2021 presents unique opportunities for CP as demand recovers from the COVID-19 pandemic. The full year outlook is mostly positive with an estimated double-digit diluted EPS growth and capital expenditures of $1.55 billion.