Canadian Pacific Railway has engineered a turnaround, posting rising sales and profits the last two quarters after struggling, along with many other companies, in early 2022. On Monday, the Relative Strength (RS) Rating for top-ranked Canadian Pacific stock climbed to 72, up from 66.
Market research shows that the best stocks to buy and watch, stocks that go on to make the biggest gains, tend to have an RS Rating of over 80 in the early stages of their moves. See if Canadian Pacific Railway can continue to show renewed price strength and hit that benchmark.
Canadian Pacific Stock Composite Shows Strength
Among its other key ratings, Canadian Pacific stock has an 83 Composite Rating, putting it in the top 17% of stocks for a group of fundamental and technical metrics. It also boasts a 90 Earnings Per Share Rating, out of 99, a reflection of strong growth in recent quarters and years. Its B Accumulation/Distribution Rating, on an A+ to E scale, shows that institutions like mutual funds and ETFs are fairly heavy buyers of its stock.
Canadian Pacific Railway has posted three quarters of accelerating earnings growth. Revenue growth has also moved higher over the same time frame. The last two quarters the Calgary, Alberta-based railroad reported 15% earnings per share growth, then a 19% rise to $1.14 a share. That came on 19% growth in revenue, then 21% growth to $2.46 billion.
Canadian Pacific Railway is expected to report its next quarterly numbers on or around April 26.
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Working On A Flat Base
Canadian Pacific Railway is trying to complete a flat base with an 83.06 entry. See if it can break out in volume at least 40% higher than normal. On Monday, Canadian Pacific stock was up 0.4% to 77.22. That's up from a 65.17 intraday low on Oct. 13. CP stock has been trading above its 200-day line and on Monday also crossed above its 50-day.
Canadian Pacific Railway earns the No. 1 rank among its peers in the Transportation-Rail industry group. Canadian National Railway is No. 2 and Jacksonville, Fla.-based CSX is in the No. 3 spot.
The exclusive Relative Strength Rating from Investor's Business Daily tracks price performance with a 1 (worst) to 99 (best) score. The score shows how a stock's price performance over the trailing 52 weeks stacks up against all the other stocks in our database.
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