3 Railroad Stocks To Watch Amid Canadian Pacific And Kansas City Southern Merger
What Happened: The new company, Canadian Pacific Kansas City, will create a Canada-Mexico-U.S. railroad with a combined 20,000 miles of rail.
Canadian Pacific Kansas City will be a larger competitor to other rail service providers and will ease supply chain difficulties between the three member countries of the United States-Mexico-Canada Agreement (USMCA). It will also provide the companies’ customers with an eco-friendlier alternative to truck transportation, according to Canadian Pacific's press release.
Why It Matters: The Canadian Pacific Kansas City rail service will have three main competitors to keep on watch:
Canadian National has a market cap of $80.89 billion and was trading down 2.25% at $113.90 at last check.
Union Pacific has a market cap of $139.37 billion and was trading down 1.87% at $206.86 at last check.
Norfolk Southern has a market cap of $66.24 billion and was trading up 0.96% at $262.96 at last check.
(Photo: Canadian Pacific Railway)
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