Canadian Pacific Railway (CP) Hits New Lifetime High

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Trade-Ideas LLC identified Canadian Pacific Railway ( CP) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Canadian Pacific Railway as such a stock due to the following factors:

  • CP has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $99.2 million.
  • CP has traded 1,595 shares today.
  • CP is trading at a new lifetime high.

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More details on CP:

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. The stock currently has a dividend yield of 0.8%. CP has a PE ratio of 33.3. Currently there are 9 analysts that rate Canadian Pacific Railway a buy, no analysts rate it a sell, and 6 rate it a hold.

The average volume for Canadian Pacific Railway has been 613,900 shares per day over the past 30 days. Canadian Pacific Railway has a market cap of $27.3 billion and is part of the services sector and transportation industry. Shares are up 2.8% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com Analysis:

TheStreet Quant 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 impressive record of earnings per share growth. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.

Highlights from the ratings report include:
  • CP's revenue growth has slightly outpaced the industry average of 4.8%. Since the same quarter one year prior, revenues slightly increased by 7.0%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Road & Rail industry. The net income increased by 446.7% when compared to the same quarter one year prior, rising from $15.00 million to $82.00 million.
  • Net operating cash flow has increased to $659.00 million or 40.51% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 10.54%.
  • 43.00% is the gross profit margin for CANADIAN PACIFIC RAILWAY LTD which we consider to be strong. It has increased from the same quarter the previous year. Despite the strong results of the gross profit margin, CP's net profit margin of 5.10% significantly trails the industry average.
  • CANADIAN PACIFIC RAILWAY LTD reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. During the past fiscal year, CANADIAN PACIFIC RAILWAY LTD increased its bottom line by earning $4.98 versus $2.80 in the prior year.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.
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