Canadian Pacific Railway Ltd (CP): Today's Featured Transportation Laggard

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 lower today making it today's featured Transportation laggard. The industry as a whole closed the day down 0.2%. By the end of trading, Canadian Pacific Railway fell $1.84 (-1.4%) to $132.87 on average volume. Throughout the day, 1,021,680 shares of Canadian Pacific Railway exchanged hands as compared to its average daily volume of 884,900 shares. The stock ranged in price between $131.38-$133.93 after having opened the day at $133.93 as compared to the previous trading day's close of $134.71. Other companies within the Transportation industry that declined today were: Newlead Holdings ( NEWL), down 18.3%, Seanergy Maritime Holdings ( SHIP), down 12.8%, FreeSeas ( FREE), down 9.6% and YRC Worldwide ( YRCW), down 9.1%.
  • EXCLUSIVE OFFER: Jim Cramer's Protege, 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 $23.8 billion and is part of the services sector. The company has a P/E ratio of 43.2, above the S&P 500 P/E ratio of 17.7. Shares are up 32.6% year to date as of the close of trading on Wednesday. Currently there are 5 analysts that rate Canadian Pacific Railway a buy, 2 analysts rate it a sell, and 13 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, increase in net income, good cash flow from operations, solid stock price performance and growth in earnings per share. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

On the positive front, TOP Ships ( TOPS), down 12.1%, Hawaiian Holdings ( HA), down 9.3%, Air Methods ( AIRM), down 4.9% and Expeditors International of Washington ( EXPD), down 4.8% , were all gainers within the transportation industry with Delta Air Lines ( DAL) being today's featured transportation industry leader.

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).

Exclusive Offer: Jim Cramer's 'go-to' small/mid-cap guru Bryan Ashenberg only buys stocks he thinks could return 50-100%. See his top picks for 14-days FREE.
null

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)