When the stock market feels a bit wobbly, it can be tough to find companies that are still growing steadily. But even when things are uncertain, some Canadian companies on the TSX are quietly putting up strong numbers. If I had $1,000 to invest right now, I’d think about splitting it between two companies that have a solid base and good potential for the long haul. Right now, those would be Winpak (TSX:WPK) and Canadian Pacific Kansas City (TSX:CP). They’re not the flashiest names, but get the job done.
Winpak
First up is Winpak, which is based in Winnipeg. They make packaging for things like food, drinks, and healthcare products. It might not sound super exciting, but it’s something that’s always needed. Looking at full-year results for 2024, Winpak reported revenue of US$1.1 billion. That’s a tiny dip of 0.9% from the year before. However, net income, which is profit after all expenses, actually went up to US$149.5 million, a small increase of 0.9% year-over-year. The earnings per share (EPS), which is how much profit they made for each share of stock, was US$2.35, up from US$2.28 in 2023.
If we just look at the last three months of 2024, Winpak’s revenue reached US$285.1 million, which was a 3.4% increase compared to the same period in 2023. The net income for that quarter was US$36.6 million, up 5.1% year-over-year. These numbers show that Winpak is performing consistently, even when the broader economy might be facing some challenges. The Canadian stock seems to be a reliable performer in a necessary industry.
Winpak also has a pretty strong financial foundation. At the end of 2024, they had US$497.3 million in cash and similar liquid assets. This kind of financial strength gives them the flexibility to invest in the business for the future and potentially return value to shareholders down the line. It’s like having a good savings account for the company.
CPKC
Now, let’s talk about Canadian Pacific Kansas City Limited, or CPKC. This Canadian stock is in the transportation business. It was formed when Canadian Pacific and Kansas City Southern, two big railways, joined forces. CPKC is now the only single railway that connects Canada, the U.S., and Mexico. This unique network puts them in a good position to benefit from trade happening across North America. It’s like they have a special highway for goods.
In the last three months of 2024, CPKC reported revenues of $3.9 billion, which was a 3% increase from the same period in 2023. The operating income, which is the profit from the main business operations, rose to $1.6 billion, up by 8% year-over-year. The Canadian stock also improved the operating ratio to 59.7%, which means it’s becoming more efficient in how they run their railway. A lower operating ratio is a good thing.
The diluted earnings per share (EPS) for CPKC in that quarter were $1.28, a 16% increase compared to the same time in 2023. These results show that CPKC is successfully bringing the two railways together and is benefiting from the increased demand for rail transportation across North America. It looks like their big merger is paying off.
Foolish takeaway
Both Winpak and CPKC show that they’re resilient and have potential for growth. Winpak’s focus on packaging for essential products means there will always be demand for what they make. CPKC’s extensive rail network positions them to take advantage of ongoing trade and transportation needs across the continent.
Putting money into both of these Canadian stocks gives you exposure to different parts of the economy, which can help diversify your Canadian investment portfolio. With the solid financial results and strategic positions in the respective industries, both Winpak and CPKC look like they could continue to grow over the long term.
When things in the market feel a bit uncertain, it can be a smart move to invest in companies that have a proven track record and a strong underlying business. Winpak and CPKC seem to fit that bill, which could make them worth considering if you had $1,000 to invest for the long haul. These might not be the most exciting Canadian stocks, but they have the potential to provide steady growth over time.
