We recently compiled a list of the The 10 Worst-Performing Stocks on Monday. In this article, we are going to take a look at where Canadian Pacific Kansas City Ltd. (NYSE:CP) stands against the other stocks.

Ten companies kicked off this week’s trading with significant losses, mirroring a wider market pessimism over growing trade tensions.

The declines came following the US imposition of additional tariffs on goods from Canada, Mexico, and China, and signals of potential retaliation of taxes on US goods.

On Monday, the Dow Jones lost another 0.28 percent, while the S&P 500 and the Nasdaq Composite both registered steep declines of 0.76 percent and 1.20 percent, respectively. The slump came following President Donald Trump’s announcements that he would slap a 25-percent tariff on Canadian and Mexican goods, while a special 60-percent rate would be taxed on Chinese products.

Our list of Monday's top losers only considered the companies with at least $2 billion in market capitalization and $5 million in daily trading volume.

A freight train making its way through a majestic mountain range, snow-capped peaks in the distance.

Canadian Pacific Kansas City Ltd. (NYSE:CP)

Shares of Canadian Pacific Kansas City Ltd. (NYSE:CP), a railway holding company, saw its share prices drop by 6.09 percent on Monday to finish at $74.75 apiece as investor sentiment was weighed down by fears of brewing trade conflict between Canada and the US, amid the latter’s imposition of tariffs on Canadian goods.

On Saturday, President Donald Trump officially signed the US’ slapping of 25-percent taxes on Canadian goods, albeit the move was delayed for a month to give US companies a chance to look for alternative partners and supplies.

The tariff imposition pushed Loop Capital Markets to downgrade its outlook for Canadian Pacific from “buy” to “sell” suggesting a bearish short-term outlook.

According to Rick Paterson, analyst at Loop Capital, the company's unique exposure to trade between the United States and Canada was a key reason for the downgrade. Canadian Pacific operates rail lines on both sides of the US-Canada border, positioning it at the forefront of any potential trade disruptions caused by the new tariffs.

Overall CP ranks 8th on our list list of the worst performing stocks on Monday. While we acknowledge the potential of CP as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than CP but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

 

READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap.

 

Disclosure: None. This article is originally published at Insider Monkey.