Is Buying Stock Like Canadian Pacific Railway Limited (USA) Good Idea After Today’s Bullish Options Activity?


 Is Buying Stock Like Canadian Pacific Railway Limited (USA) Good Idea After Today's Bullish Options Activity?

In today’s session Canadian Pacific Railway Limited (USA) (CP) registered an unusually high (5,018) contracts volume of call trades. Someone, most probably a professional was a very active buyer of the October, 2016 call, expecting serious CP increase. With 5,018 contracts traded and 1724 open interest for the Oct, 16 contract, it seems this is a quite bullish bet. The option with symbol: CP161021C00160000 closed last at: $1.3 or 36.8% up. The stock last traded at $152.84 per share. It is down 24.30% since March 1, 2016 and is uptrending. It has outperformed by 15.06% the S&P500.

Analysts await Canadian Pacific Railway Limited (USA) (NYSE:CP) to report earnings on October, 18. They expect $2.10 EPS, up 1.94% or $0.04 from last year’s $2.06 per share. CP’s profit will be $308.60 million for 18.20 P/E if the $2.10 EPS becomes a reality. After $1.59 actual EPS reported by Canadian Pacific Railway Limited (USA) for the previous quarter, Wall Street now forecasts 32.08% EPS growth.

Canadian Pacific Railway Limited (USA) (NYSE:CP) Ratings Coverage

Out of 18 analysts covering Canadian Pacific (NYSE:CP), 9 rate it a “Buy”, 1 “Sell”, while 8 “Hold”. This means 50% are positive. $225 is the highest target while $128 is the lowest. The $171.73 average target is 12.36% above today’s ($152.84) stock price. Canadian Pacific has been the topic of 37 analyst reports since September 30, 2015 according to StockzIntelligence Inc. The rating was upgraded by TD Securities on Wednesday, October 21 to “Hold”. Stephens initiated the stock with “Equal-Weight” rating in Tuesday, March 15 report. Cowen & Co maintained it with “Outperform” rating and $166 target price in Wednesday, June 22 report. The company was upgraded on Friday, January 22 by RBC Capital Markets. On Wednesday, November 18 the stock rating was maintained by Credit Suisse with “Outperform”. The rating was maintained by Cowen & Co on Thursday, April 21 with “Outperform”. Citigroup maintained the stock with “Buy” rating in Tuesday, September 13 report. RBC Capital Markets maintained it with “Outperform” rating and $216 target price in Thursday, July 21 report. The stock of Canadian Pacific Railway Limited (USA) (NYSE:CP) earned “Outperform” rating by Credit Suisse on Friday, January 22. The company was maintained on Thursday, April 21 by Bernstein.

Canadian Pacific Railway Limited , together with its subsidiaries, operates a transcontinental railway in Canada and the United States. The company has a market cap of $22.46 billion. The Firm operates in rail transportation segment. It has a 20.52 P/E ratio. The Company’s business mix includes bulk commodities, merchandise freight and intermodal traffic over a network of approximately 12,500 miles, serving the principal business centers of Canada from Montreal, Quebec, to Vancouver, British Columbia, and the United States Northeast and Midwest regions.

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