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 0.6%. By the end of trading, Canadian Pacific Railway fell $4.56 (-3.5%) to $127.31 on heavy volume. Throughout the day, 1,900,268 shares of Canadian Pacific Railway exchanged hands as compared to its average daily volume of 848,600 shares. The stock ranged in price between $124.47-$129.52 after having opened the day at $124.79 as compared to the previous trading day's close of $131.87. Other companies within the Transportation industry that declined today were: PHI Incorporated Non Voting ( PHIIK), down 5.2%, Globus Maritime ( GLBS), down 5.1%, Era Group ( ERA), down 5.1% and Sino-Global Shipping America ( SINO), down 4.6%.
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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 $23.1 billion and is part of the services sector. The company has a P/E ratio of 41.8, above the S&P 500 P/E ratio of 17.7. Shares are up 29.9% year to date as of the close of trading on Monday. Currently there are 5 analysts that rate Canadian Pacific Railway a buy, 2 analysts rate it a sell, and 12 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, Frozen Food Express Industries ( FFEX), down 9.4%, Frontline ( FRO), down 4.3%, Guangshen Railway Company ( GSH), down 3.5% and Newlead Holdings ( NEWL), down 3.5%.

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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