Canadian Pacific Railway Ltd (CP): Today's Featured Transportation 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 Transportation industry higher today making it today's featured transportation winner. The industry as a whole closed the day up 0.6%. By the end of trading, Canadian Pacific Railway rose $1.79 (1.9%) to $93.62 on heavy volume. Throughout the day, 1.1 million shares of Canadian Pacific Railway exchanged hands as compared to its average daily volume of 564,500 shares. The stock ranged in a price between $91.34-$94.45 after having opened the day at $91.49 as compared to the previous trading day's close of $91.83. Other companies within the Transportation industry that increased today were: Sino-Global Shipping America ( SINO), up 21.1%, DS Torm ( TRMD), up 18.9%, Pacer International ( PACR), up 10%, and Star Bulk Carriers ( SBLK), up 7.8%.
  • EXCLUSIVE OFFER: Jim Cramer's Protégé, Dave Peltier, only buys Stocks Under $10 that he thinks could potentially double. See what he's trading today with a 14-day FREE pass.

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 $16.16 billion and is part of the services sector. The company has a P/E ratio of 22.8, above the S&P 500 P/E ratio of 17.7. Shares are up 37.9% year to date as of the close of trading on Monday. Currently there are six analysts that rate Canadian Pacific Railway a buy, one analyst rates it a sell, and 14 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, compelling growth in net income, good cash flow from operations, expanding profit margins and solid stock price performance. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

On the negative front, Vitran Corporation ( VTNC), down 7.3%, Air Transport Services Group ( ATSG), down 3.5%, YRC Worldwide ( YRCW), down 3.3%, and TOP Ships ( TOPS), down 3.2%, were all laggards within the transportation industry with US Airways Group ( LCC) being today's transportation industry laggard.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the transportation industry could consider iShares Dow Jones Transportation ( IYT) while those bearish on the transportation industry could consider ProShares UltraShort Industrials ( SIJ).

Holiday Special: Subscribe to Action Alerts PLUS to see how Jim Cramer trades his $2.5 Million+ portfolio for 51% off the list price. Your first 14-days are FREE: Sign up today to get e-mail alerts before every trade.

If you liked this article you might like

ADP Rejects Ackman Demands as It Performs Seven Times Better Than He Does

CSX Chief Harrison Blames Service Disruptions on Employee Resistance

Activists Forced CEOs to Leave These Huge Companies This Year

CSX: Cramer's Top Takeaways

Navigating Strong Crosscurrents: Cramer's 'Mad Money' Recap (Tuesday 6/13/17)