We like both; with TFII's recent decline, and its valuation much lower, we would lean to it today, but we think new buying can go slowly. CP earnings of 90c per share matched estimates, with sales of $2.26B slightly lower than expected. Still, profit rose 36% with higher revenue, and it was a good performance considering macro pressures and cost creep. With regulatory approval behind it, Canadian Pacific Kansas City is focused on integrating the two networks that will span three countries, increase competition and create opportunities for the newly created railroad. Recent intermodal wins from Schneider and Knight-Swift are early examples of the power of this new network. CPKC will likely provide more details around additional intermodal opportunities, as well as prospects for its bulk and merchandise franchises, at its June investor day, where management will likely lay out a detailed road map to integrate the two networks. Nearer term, the outlook for CP's volume isn't without challenges, but it might be slightly better than some peers due to recent international intermodal wins and new grain flows emerging to the Gulf and into Mexico.
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