5-Star Stocks Poised to Pop: Canadian Pacific

Before you go, we thought you'd like these...
Before you go close icon

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 (NYS: CP) has earned a coveted five-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, Canada (1881)
Market Cap$13.4 billion
IndustryRailroads
Trailing-12-Month Revenue$5.5 billion
ManagementCEO Frederic Green (since 2006)
CFO Kathryn McQuade (since 2008)
Return on Equity (average, past 3 years)12.1%
Cash/Debt$78.5 million / $4.8 billion
Dividend Yield1.5%
CompetitorsBurlington Northern Santa Fe
Canadian National Railway
Union Pacific

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

On CAPS, 97% of the 374 members who have rated Canadian Pacific believe the stock will outperform the S&P 500 going forward.

A couple of months ago, one of those Fools, NHWeston, touched on the tailwinds working in the stock's favor:

Canadian Pacific has spent the last several years in the shadow of Canadian National. It has now begun to come into its own, especially in the development of Northern provinces, grain traffic, and lumber. A solid player.    

If you want market-beating returns, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future. Of course, despite a strong five-star rating, Canadian Pacific may not be your top choice.

If that's the case, we've compiled a special free report for investors called "Secure Your Future With 9 Rock-Solid Dividend Stocks," which uncovers several other juicy income opportunities. The report is 100% free, but it won't be around forever, so click here to access it now.

Want to see how well (or not so well) the stocks in this series are performing? Follow the newTrackPoisedToCAPS account.  

At the time this article was published 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 daysWe 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.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story

Want more news like this?

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

From Our Partners