5 Best TSX Stocks To Buy Right Now

2. Canadian Pacific Kansas City Limited (NYSE:CP)

Number of Hedge Fund Holders: 48

Canadian Pacific Kansas City Limited (NYSE:CP) is a transcontinental freight railway company that operates in both Canada and the United States. The company specializes in transporting different types of cargo, including bulk commodities and merchandise freight. It is one of the best TSX stocks to watch. 

On April 26, the recently merged Canadian Pacific Kansas City Limited (NYSE:CP) reported impressive year-over-year growth in revenues and operational performance in its first financial report under the new name. In the first quarter of 2023, revenues climbed 23% compared to the previous year, reaching $2.27 billion. Additionally, the core adjusted earnings per share rose from $0.67 in Q1 2022 to $0.90 in Q1 2023. The company also experienced an 11% increase in volumes, while achieving a 7.5% improvement in the adjusted operating ratio, which now stands at 63.4%.

According to Insider Monkey’s first quarter database, 48 hedge funds were bullish on Canadian Pacific Kansas City Limited (NYSE:CP), compared to 49 funds in the earlier quarter. Chris Hohn’s TCI Fund Management is the largest stakeholder of the company, with 55.8 million shares worth $4.3 billion. 

Artisan Focus Fund made the following comment about Canadian Pacific Kansas City Limited (NYSE:CP) in its first quarter 2023 investor letter:

“We’ve held a large position in Canadian Pacific Kansas City Limited (NYSE:CP) for more than a year. During the quarter, Canadian Pacific completed the acquisition of the Kansas City Southern Railroad. This outcome, to us, was a best case scenario. Despite considerable fears leading up to the close, the transaction resulted in no divestitures, concessions or track usage/interchange limitations in any key regions. This was exciting, and we see a very compelling setup for the next two years. Canadian Pacific has a best-in-class management team, now running the only truly end-to-end railroad network that can stretch across the high growth west coast Canadian ports down into lower Mexico. We think both areas are key beneficiaries of our De-Globalization theme. While the merits of the deal are slowly becoming apparent, we still think the scope of the upside is underappreciated. We expect accelerating growth from here in the form of new customer acquisition and share gains by existing customers. The deal itself is particularly unique as our analysis points to essentially no cannibalization or overlapping of existing routes.”