Trade-Ideas LLC identified Canadian Pacific Railway ( CP) as a post-market laggard 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 $120.4 million.
  • CP is down 2.2% today from today's close.

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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%. CP has a PE ratio of 2. Currently there are 13 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 1.1 million shares per day over the past 30 days. Canadian Pacific Railway has a market cap of $21.9 billion and is part of the services sector and transportation industry. The stock has a beta of 1.14 and a short float of 0.8% with 1.04 days to cover. Shares are up 17.4% year-to-date as of the close of trading on Friday.

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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 notable return on equity and expanding profit margins. We feel its strengths outweigh the fact that the company has had sub par growth in net income.

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. Compared to other companies in the Road & Rail industry and the overall market, CANADIAN PACIFIC RAILWAY LTD's return on equity significantly exceeds that of both the industry average and the S&P 500.
  • 49.10% 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 22.62% is above that of the industry average.
  • CANADIAN PACIFIC RAILWAY LTD's earnings per share declined by 8.9% in the most recent quarter compared to the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past year. However, we anticipate this trend reversing over 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 ($10.58 versus $8.40).
  • CP, with its decline in revenue, slightly underperformed the industry average of 10.6%. Since the same quarter one year prior, revenues fell by 12.2%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • Net operating cash flow has decreased to $512.00 million or 12.47% when compared to the same quarter last year. Despite a decrease in cash flow of 12.47%, CANADIAN PACIFIC RAILWAY LTD is in line with the industry average cash flow growth rate of -16.33%.

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