4-Star Stocks Poised to Pop: Canadian Pacific Railway

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, railroad operator Canadian Pacific Railway (NYSE: CP  ) has earned a respected four-star ranking.

With that in mind, let's take a closer look at Canadian Pacific's business and see what CAPS investors are saying about the stock right now.

Canadian Pacific facts

Headquarters (founded) Calgary, Alberta (1881)
Market Cap $14.5 billion
Industry Railroads
Trailing-12-Month Revenue $5.5 billion
Management CEO Hunter Harrison (since June 2012)
CFO Kathryn McQuade (since September 2008)
Return on Equity (average, past 3 years) 11.6%
Cash/Debt $82.0 million / $4.8 billion
Dividend Yield 1.7%
Competitors Burlington Northern Santa Fe
Canadian National Railway
Union Pacific

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 96% of the 387 members who have rated Canadian Pacific believe the stock will outperform the S&P 500 going forward.

Just last month, one of those Fools, NHWeston102, succinctly summed up the bull case for our community:

[Canadian Pacific] has been in the shadow of [Canadian National Railway] for over a decade now, but appears about to move up. It holds a number of key lines, is less dependent on coal than many, and the rise of activists like [Bill Ackman] point [Canadian Pacific] towards a 10-15% expansion.

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Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Motley Fool newsletter services have recommended buying shares of Canadian National Railway. Try any of our Foolish newsletter services free for 30 days.

We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.

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Related Tickers

10/26/2016 9:49 AM
CP $145.88 Down -1.22 -0.83%
Canadian Pacific R… CAPS Rating: ***