Canadian Pacific Railway Ltd (CP): Today's Featured Services Winner

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

Canadian Pacific Railway ( CP) pushed the Services sector higher today making it today's featured services winner. The sector as a whole was unchanged today. By the end of trading, Canadian Pacific Railway rose $1.39 (1.6%) to $85.57 on average volume. Throughout the day, 539,604 shares of Canadian Pacific Railway exchanged hands as compared to its average daily volume of 503,400 shares. The stock ranged in a price between $84.17-$85.60 after having opened the day at $84.18 as compared to the previous trading day's close of $84.18. Other companies within the Services sector that increased today were: DS Torm ( TRMD), up 42.6%, Ultrapetrol Bahamas ( ULTR), up 11.7%, DLH Holdings ( DLHC), up 11.1%, and WidePoint Corporation ( WYY), up 10.4%.
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Canadian Pacific Railway Limited, through its subsidiaries, operates as a transcontinental railway providing freight transportation services, logistics solutions, and supply chain expertise in Canada and the United States. Canadian Pacific Railway has a market cap of $14.32 billion and is part of the transportation industry. The company has a P/E ratio of 22.1, above the average transportation industry P/E ratio of 21.9 and above the S&P 500 P/E ratio of 17.7. Shares are up 22.5% year to date as of the close of trading on Monday. Currently there are 10 analysts that rate Canadian Pacific Railway a buy, one analyst rates it a sell, and 11 rate it a hold.

TheStreet Ratings rates Canadian Pacific Railway as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations, solid stock price performance, reasonable valuation levels and notable return on equity. We feel these strengths outweigh the fact that the company has had somewhat weak growth in earnings per share.

On the negative front, Express ( EXPR), down 22.2%, RadioShack ( RSH), down 13.3%, China HGS Real Estate ( HGSH), down 10.9%, and Gol Intelligent Airlines ( GOL), down 10.5%, were all laggards within the services sector with Costco Wholesale Corporation ( COST) being today's services sector laggard.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the services sector could consider iShares Dow Jones US Cons Services ( IYC) while those bearish on the services sector could consider ProShares Ultra Short Consumer Sers ( SCC).

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