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

  • CP has 12x the normal benchmarked social activity for this time of the day compared to its average of 4.35 mentions/day.
  • CP has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $164.3 million.

Identifying stocks with 'Unusual Social Activity' tends to be a valuable process for traders looking to capitalize on the 'talk of the town' stocks that are basking in far more attention from the StockTwits financial community than normal. Good press? Bad press? It ultimately doesn't matter if it's good or bad if you know how to trade around the sentiment. Certain hedge funds use such data for their proprietary algorithms and it is not uncommon to see shared social sentiment play itself out in a stock's price trend.

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More details on CP:

Canadian Pacific Railway Limited, together with its subsidiaries, operates a transcontinental railway in Canada and the United States. The stock currently has a dividend yield of 0.8%. CP has a PE ratio of 22. Currently there are 13 analysts that rate Canadian Pacific Railway a buy, no analysts rate it a sell, and 3 rate it a hold.

The average volume for Canadian Pacific Railway has been 1.1 million shares per day over the past 30 days. Canadian Pacific Railway has a market cap of $20.0 billion and is part of the services sector and transportation industry. The stock has a beta of 1.07 and a short float of 0.8% with 0.96 days to cover. Shares are up 1.9% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Canadian Pacific Railway as a hold. The company's strengths can be seen in multiple areas, such as its notable return on equity and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, deteriorating net income and generally higher debt management risk.

Highlights from the ratings report include:
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. When compared to other companies in the Road & Rail industry and the overall market, CANADIAN PACIFIC RAILWAY LTD's return on equity exceeds that of the industry average and significantly exceeds that of the S&P 500.
  • 49.32% 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. Regardless of the strong results of the gross profit margin, the net profit margin of 18.90% trails the industry average.
  • Despite the weak revenue results, CP has outperformed against the industry average of 16.3%. Since the same quarter one year prior, revenues slightly dropped by 4.1%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • The company, on the basis of change in net income from the same quarter one year ago, has underperformed when compared to that of the S&P 500 and the Road & Rail industry average. The net income has significantly decreased by 29.3% when compared to the same quarter one year ago, falling from $451.00 million to $319.00 million.
  • Currently the debt-to-equity ratio of 1.87 is quite high overall and when compared to the industry average, suggesting that the current management of debt levels should be re-evaluated. Along with the unfavorable debt-to-equity ratio, CP maintains a poor quick ratio of 0.90, which illustrates the inability to avoid short-term cash problems.

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