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 20x the normal benchmarked social activity for this time of the day compared to its average of 2.52 mentions/day.
  • CP has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $247.9 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 1.2%. CP has a PE ratio of 17. Currently there are 13 analysts that rate Canadian Pacific Railway a buy, no analysts rate it a sell, and 5 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 $19.5 billion and is part of the services sector and transportation industry. The stock has a beta of 1.04 and a short float of 1% with 0.72 days to cover. Shares are down 2.5% year-to-date as of the close of trading on Tuesday.

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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 increase in net income, notable return on equity, expanding profit margins and growth in earnings per share. We feel its strengths outweigh the fact that the company shows weak operating cash flow.

Highlights from the ratings report include:
  • 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 68.8% when compared to the same quarter one year prior, rising from $320.00 million to $540.00 million.
  • 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.
  • 48.08% 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. Along with this, the net profit margin of 33.94% significantly outperformed against 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. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, CANADIAN PACIFIC RAILWAY LTD reported lower earnings of $8.40 versus $8.49 in the prior year. This year, the market expects an improvement in earnings ($10.95 versus $8.40).
  • Regardless of the drop in revenue, the company managed to outperform against the industry average of 13.8%. Since the same quarter one year prior, revenues slightly dropped by 4.4%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.

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