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 0.4%. By the end of trading, Canadian Pacific Railway rose $1.38 (1.1%) to $127.21 on average volume. Throughout the day, one million shares of Canadian Pacific Railway exchanged hands as compared to its average daily volume of 799,200 shares. The stock ranged in a price between $125.92-$127.62 after having opened the day at $126.10 as compared to the previous trading day's close of $125.83. Other companies within the Transportation industry that increased today were: FreeSeas ( FREE), up 25.8%, TOP Ships ( TOPS), up 6.4%, Gol Intelligent Airlines ( GOL), up 6%, and Safe Bulkers ( SB), up 5.5%.
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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 $21.8 billion and is part of the services sector. The company has a P/E ratio of 44.8, above the S&P 500 P/E ratio of 17.7. Shares are up 23.8% year to date as of the close of trading on Wednesday. Currently there are four analysts that rate Canadian Pacific Railway a buy, two analysts rate it a sell, and 15 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 and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had somewhat weak growth in earnings per share.

On the negative front, Era Group ( ERA), down 4.2%, DryShips ( DRYS), down 3.5%, Eagle Bulk Shipping ( EGLE), down 3.2%, and Newlead Holdings ( NEWL), down 3%, were all laggards within the transportation industry with Union Pacific ( UNP) 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).

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