The Canadian railway industry plays a crucial role in the economy, moving goods across the country and into international markets. One of the most significant players in this space is Canadian Pacific Kansas City (TSX:CP). Investors are eager to understand what 2025 holds for the company and whether it remains a strong long-term investment. Yet with the broader transportation sector in focus, it’s also worth considering other TSX-listed transportation stocks as well.
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CP stock
CPKC operates an extensive railway network across Canada, the United States, and Mexico. It transports essential commodities like grain, coal, and automotive products, making it a key player in North American trade. As of writing, its stock is trading at approximately $74.24 per share, with a market capitalization of around $69.3 billion. Analysts have given it an average price target of $95.45, suggesting an upside potential of roughly 28.6% from current levels.
Financial projections for CPKC remain strong. Earnings are expected to rise from $2.6 billion in 2025 to $4.2 billion by 2027, reflecting an annual growth rate of 16.9%. Revenue is also forecast to increase, reaching $10.9 billion by 2026. These numbers indicate CP stock is poised for long-term growth, even amid fluctuating economic conditions.
However, trade policies remain a concern. Tariffs imposed by the U.S. administration could impact cross-border trade volumes, affecting revenue and profitability. Some analysts worry that these policies could slow economic growth in Canada and Mexico, leading to challenges for transportation companies like CPKC. So are there others to consider?
Stocks to watch beyond CP stock
Looking beyond CPKC, other TSX-listed transportation companies also offer investment potential. Canadian National Railway (TSX:CNR) operates a vast network across Canada and parts of the United States, making it a direct competitor to CPKC. It has a market capitalization of about $100 billion and a long history of consistent revenue growth. Investors looking for stability in the railway industry often consider CNR alongside CPKC.
TFI International (TSX:TFII) is another major player in the transportation sector. It provides package and courier services, less-than-truckload shipments, and logistics solutions across North America. With a market capitalization of around $15 billion, it has expanded aggressively through acquisitions, strengthening its market position. The company’s diversified operations make it well-positioned to weather economic downturns.
Bottom line
Investing in transportation stocks can provide exposure to essential industries that keep the economy moving. CPKC’s outlook remains positive, with strong earnings growth and long-term expansion opportunities. This especially comes down to its investment and merger with Kansas City Southern, creating the only railway that can run from Canada straight through to Mexico.
However, external factors like trade policies and economic conditions can impact performance. Other companies, including Canadian National Railway and TFI International, offer alternative investment opportunities in this sector. Here, you’re gaining access to even more rail and truck transportation. As always, investors should carefully evaluate financials and market conditions before making investment decisions. But if you’re looking for a strong outlook among transportation stocks, it might be time to consider CP stock, as well as these other top stocks on the TSX today.
