Shares of Canadian Pacific Railway Limited CP hit a 52-week high of $208.33 during the trading session on Aug 27 before retracing a bit to close at $207.69. Moreover, the stock has surged 35.2% in a year, outperforming the industry’s 33.7% growth. Let’s delve into the reasons behind this upsurge.Reasons Behind the RallyStrong freight demand has been aiding carriers across the globe and Canadian Pacific is no exception. With freight revenues accounting for the major share of the company’s top line, a rise in shipping demand is immensely beneficial to its growth. Notably, freight revenues improved 7% year over year in the second quarter of 2018. In fact, higher shipments of key commodities drove overall results. Freight revenues in some key segments like Energy, chemicals and plastics, Automotive and Intermodal climbed 29%, 15% and 7%, respectively. Moreover, the buoyant freight scenario is anticipated to sustain in the coming years as well.The recent labor deal ratifications are other positives for the company. Last month, Canadian Pacific ratified its four-year agreement with the union representing conductors and locomotive engineers. Also, System Council No. 11 of the International Brotherhood of Electrical Workers ratified a three-year agreement. The contracts aimed at catering to needs of the various labor groups imply greater operational efficiency.The company’s initiatives to reward shareholders through dividends are also encouraging. This May, the company raised its quarterly dividend per share by 15.5%. On another positive note, the uncertainty over NAFTA (North American Free Trade Agreement) is likely to come to an end soon. While Mexico and the United States have inked an agreement to rework the trade deal, many market watchers expect Canada to sign the same.On the back of the above tailwinds, the Zacks Consensus Estimate for current-quarter earnings has been moved 0.7% northward over the past 60 days.Zacks Rank & Key PicksCanadian Pacific carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader Transportation sector are GATX Corporation GATX, Trinity Industries, Inc. TRN and SkyWest, Inc SKYW. While GATX holds a Zacks Rank #2 (Buy), Trinity and SkyWest sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.Shares of GATX, Trinity and SkyWest have rallied more than 42%, 28% and 83%, respectively, in a year.Today's Stocks from Zacks' Hottest StrategiesIt's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.See Them Free>>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report SkyWest, Inc. (SKYW): Free Stock Analysis Report Trinity Industries, Inc. (TRN): Free Stock Analysis Report GATX Corporation (GATX): Free Stock Analysis Report Canadian Pacific Railway Limited (CP): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research