This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Ratings Changes: MasterCard, Southwestern Ratings provides exclusive stock, ETF and mutual fund ratings and commentary based on award-winning, proprietary tools. Its "safety first" approach to investing aims to reduce risk while seeking total return performance.

BOSTON ( TheStreet) --'s stock-rating model upgraded Canadian Pacific Railway (CP - Get Report) to "buy."

The numbers: Second-quarter revenue decreased 16% to $1 billion as net income inched up 2% to $157 million. Earnings per share fell 7% to 93 cents, hurt by a significantly higher share count. The operating margin climbed from 21% to 22% and the net margin jumped from 13% to 15%. A quick ratio of 0.6 indicates a weak liquidity position, but the cash balance has grown 313% to $157 million since the year-earlier quarter. And a debt-to-equity ratio of 0.7 demonstrates reasonable leverage.

The stock: Canadian Pacific has increased 33% in 2009, beating major U.S. indices. At a 2009 price-to-earnings ratio of 17, the stock is on par with the S&P 500 Index, but at a discount to its peer group.

The model upgraded transaction-processor MasterCard (MA) to "buy."

The numbers: Second-quarter revenue increased 3% to $1.3 billion as the company swung to a profit of $349 million, or $2.67 per share, from a loss of $746 million, or $5.74 per share, in the year-earlier period, helped by improved pricing, more transactions processed, and fewer rebates and incentives. The operating margin increased from 33% to 44% and the net margin climbed from negative territory to 27%. MasterCard has an outstanding financial position, especially when considering its size. A quick ratio of 1.3 indicates strong liquidity and the balance sheet holds just $21 million of debt, reflecting minimal leverage.

The stock: MasterCard is up 36% in 2009, beating major U.S. indices. The stock trades at a 2009 price-to-earnings ratio of 18 and a 2010 P/E ratio of 15, but offers a dividend yield below 1%.
1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
CP $142.70 0.00%
MC $27.46 0.00%
SWN $11.92 0.00%
TCK $11.29 0.00%
AAPL $94.88 -0.32%


Chart of I:DJI
DOW 17,750.91 -140.25 -0.78%
S&P 500 2,063.37 -18.06 -0.87%
NASDAQ 4,763.2240 -54.37 -1.13%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs