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Canadian Pacific (CP) Extends Contract With Canadian Tire

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Canadian Pacific Railway Limited (CP - Free Report) has announced a multi-year agreement with Canadian Tire Corporation (“CTC”) to continue to move the retailer's goods in Canada.

In order to facilitate the smooth transportation of CTC's goods and reduce carbon emissions, Canadian Pacific will begin to directly serve Ashcroft Terminal in Ashcroft, British Columbia, thus reducing the need for shifting volumes to truck.

Canadian Pacific has been successfully serving CTC's dealer and corporate stores for more than 90 years now. The agreement with CP helps CTC explore sourcing and optionality opportunities through the former’s extensive network.

Canadian Pacific’s president and chief executive officer, Keith Creel, said, "CP is proud to continue our near-century-long commercial relationship with Canadian Tire, another iconic Canadian brand." Creel added, "As the single largest container importer in Canada, CTC will benefit from CP's leading service, reliability and network capacity across Canada."

In another initiative, Canadian Pacific recently extended its relationship with potash exporting and marketing company, Canpotex Limited. CP inked a seven-year deal with Canpotex, which will run through 2028.  The companies’ existing 10-year contract will expire next year and get replaced with the newly inked deal.

Zacks Rank & Key Picks

Canadian Pacific carries a Zacks Rank #3 (Hold).

Here are some better-ranked stocks within the broader Transportation sector:

ArcBest Corporation (ARCB - Free Report) flaunts a Zacks Rank #1 (Strong Buy). The company has a stellar earnings surprise history. It has outperformed the Zacks Consensus Estimate for earnings in each of the preceding four quarters, the average surprise being 27.4%. You can see the complete list of today’s Zacks #1 Rank stocks here.

Shares of ArcBest have surged more than 100% in a year’s time.

Expeditors International of Washington (EXPD - Free Report) carries a Zacks Rank #1. The company’s earnings have outperformed the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 29.1%.

Shares of Expeditors have appreciated more than 41% so far this year.

Schneider National (SNDR - Free Report) carries a Zacks Rank #2 (Buy). The company’s earnings have trumped the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 21%.

Shares of Schneider National have rallied more than 31% so far this year.

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