Выбор редакции

Canadian Pacific (CP) Hits New 52-week High: Here's Why

Canadian Pacific Railway Limited CP hit a fresh 52-week high of $183.82 per share during the trading session on Dec 27 before retracing a bit to close the same at $182.08. Notably, the company’s shares have performed well in the last six months. The stock has rallied 14.5%, outperforming the industry’s gain of 12.3%.

 



 

Catalysts Behind the Upsurge

The company’s efforts to check costs to drive bottom-line growth are impressive. Notably, the operating ratio (operating expenses as a percentage of revenues on an adjusted basis) has improved 160 basis points in the first nine months of the year.

In fact, with volume expansion, the company raised guidance for 2017. Canadian Pacific now expects a double-digit rise in adjusted earnings per share for 2017 compared with C$10.29 in 2016.

Canadian Pacific’s initiatives to reward investors through share buybacks and rise in dividend payments are also encouraging. In May, the company hiked its quarterly dividend per share by 12.5% to C$0.5625.

The company’s trailing 12-month return on equity (ROE) supports its growth potential. Not only has its 31.9% ROE remained steady over the last year, the same compares favorably with its industry’s ROE of 21.1%, reflecting that it is efficient in using the shareholders’ funds.

Zacks Rank & Key Picks

Canadian Pacific carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader Transportation sector are Gol Linhas Aereas Inteligentes S.A. GOL, LATAM Airlines Group S.A. LTM and SkyWest, Inc. SKYW. While Gol Linhas and LATAM Airlines sport a Zacks Rank #1 (Strong Buy), SkyWest carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Shares of Gol Linhas, LATAM Airlines and SkyWest have surged more than 200%, 66% and 42%, respectively, in a year.

Today's Stocks from Zacks' Hottest Strategies

It's hard to believe, even for us at Zacks. But while the market gained +18.8% from 2016 - Q1 2017, our top stock-picking screens have returned +157.0%, +128.0%, +97.8%, +94.7%, and +90.2% respectively.

And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.

See Them Free>>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Gol Linhas Aereas Inteligentes S.A. (GOL): Free Stock Analysis Report
 
SkyWest, Inc. (SKYW): Free Stock Analysis Report
 
Canadian Pacific Railway Limited (CP): Free Stock Analysis Report
 
LATAM Airlines Group S.A. (LTM): Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research