CP Stock Analysis: Buy, Sell, or Hold?
CP - Canadian Pacific Kansas City Limited
$85.29
-0.38 (-0.44%)
▼
5d:
-4.46%
30d:
-1.64%
90d:
+7.34%
BUY
HIGH Confidence
Analysis Updated: Jun 23, 2026 12:00 AM ET
Earnings: Jul 29, 2026
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Interactive Price Chart (1 Month)
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Bottom Line:
✅ BUY SIGNAL: CP shows strong fundamentals and good volume confirmation. Solid entry point despite oversold pricing.
✅ BUY SIGNAL: CP shows strong fundamentals and good volume confirmation. Solid entry point despite oversold pricing.
Long-Term Wealth Forecast (2031)
Based on Analyst Consensus Growth & Historical Valuation
0% (Stagnation)
50% (Hyper Growth)
EST. PRICE IN 2031
$130.16
Based on 9.5% avg growth
INTRINSIC VALUE TODAY
$80.82
Trading above historical range
How this is calculated: We use a Growth Decay Model: starting with analyst consensus growth (adjusted above) and gradually slowing it down to a long-term terminal rate (4%) by Year 5. This provides a more realistic valuation than assuming constant hyper-growth. We then apply a 14.1x Exit PE.
In-depth Analysis How we analyze
Valuation Analysis: CP is currently trading at $85.29, which is considered oversold relative to its 30-day fair value range of $86.33 to $90.18. The stock's valuation (Forward PE: 14.5) is in line with its historical norms (14.1). At these levels, the market is pricing in 0.9% annual earnings growth.
Technical Outlook: Technically, CP is in a strong downtrend. The price is currently testing key support at $85.06. A bounce from this level would confirm strength, while a break below could signal further downside.
Market Sentiment: The stock shows a mixed technical setup (40/100), with neutral trendline and momentum signals. Combining these factors, the current setup offers a favorable risk/reward ratio for buyers.
Technical Outlook: Technically, CP is in a strong downtrend. The price is currently testing key support at $85.06. A bounce from this level would confirm strength, while a break below could signal further downside.
Market Sentiment: The stock shows a mixed technical setup (40/100), with neutral trendline and momentum signals. Combining these factors, the current setup offers a favorable risk/reward ratio for buyers.
Quick Decision Summary
Current Position
OVERSOLD
Historical Trading Range
$86.33 -
$90.18
Company Quality Score
49/100
(HOLD)
Volume Confirmation
HIGH
Confidence Score
78.1%
All Signals
- BULLISH: Price oversold vs 30-day range
- NEUTRAL: Mixed technical signals (40/100)
- BULLISH: High volume confirmation
- NEUTRAL: Near Wall St target ($89.77)
- BULLISH: Expecting earnings turnaround to 0.9% growth with -2.5% revenue growth
Trading Range Analysis
30-Day Trading Range
$86.33 -
$90.18
Current vs Trading Range
OVERSOLD
Support & Resistance Levels
Support Level
$85.06
Resistance Level
$91.52
Current Trend
Strong Downtrend
Technical data as of
Jun 17, 2026
Fundamental Context
Forward P/E (Next Year Est.)
14.47
Wall Street Target
$89.77
(+5.3%)
Revenue Growth (YoY)
-2.5%
Earnings Growth (YoY)
-3.1%
Profit Margin
27.2%
Valuation Premium vs History
+0.9% premium
PE vs Historical
14.5 vs 14.1
FAIR
Market-Implied Price Targets
If current PE multiple persists
Implied Growth (YoY):
+0.9%
(market-implied from PE analysis)
1-Year Target
$86.06
(+1%)
2-Year Target
$86.83
(+2%)
3-Year Target
$87.61
(+3%)
3-Yr Target (if PE normalizes)
(PE: 14→14)
PE COMPRESSION
$85.39
(+0%)
Earnings growth offset by PE compression
3-Year Scenarios
Using analyst projected EPS growth
Bull:
(PE: 21.8, Growth: 14.9%)
$194.59
(+128%)
Base:
(SPY PE: 14.5, Growth: 14.9%)
$129.25
(+52%)
Bear:
(PE: 12.3, Growth: 14.9%)
$109.86
(+29%)
📈
Valuation based on Current Earnings
RECOVERY PLAY: Stock looks expensive now (27x PE), but valuation improves significantly next year (14x PE) as earnings recover.
Trailing PE: 27.11 | Current EPS (TTM): $3.16
Bull Case
$175.82
(+106%)
Analyst growth 86.6%, PE expands to 29.8
Base Case
$159.84
(+87%)
Market implied 86.6%, PE stable at 27.1
Bear Case
$58.26
(-32%)
Severe decline -20.0%, PE contracts to 23.0
These are projections based on PE multiples and EPS growth scenarios, not predictions. Actual results may vary significantly.
Share & Embed Analysis
Last updated: June 24, 2026 2:10 AM ET
Data refreshes hourly during market hours. Next update: 3:10 AM
Data refreshes hourly during market hours. Next update: 3:10 AM
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Technical Signals Check
Is CP showing a specific setup today?
Insider Activity (6 Months)
0
Buys
0
Sells
0
Net
NEUTRAL
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