CP Stock Analysis: Buy, Sell, or Hold?
CP - Canadian Pacific Kansas City Limited
$88.89
0.73 (0.83%)
▲
5d:
-3.76%
30d:
+3.46%
90d:
+2.22%
BUY
MODERATE Confidence
Analysis Updated: Jul 31, 2026 12:00 AM ET
Earnings: Jul 29, 2026
0d
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Interactive Price Chart (1 Month)
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Bottom Line:
💡 BUY OPPORTUNITY: CP shows positive signals but monitor for confirmation. Market pricing in 1.4% growth. Moderate conviction.
💡 BUY OPPORTUNITY: CP shows positive signals but monitor for confirmation. Market pricing in 1.4% growth. Moderate conviction.
Long-Term Wealth Forecast (2031)
Based on Analyst Consensus Growth & Historical Valuation
0% (Stagnation)
50% (Hyper Growth)
EST. PRICE IN 2031
$135.65
Based on 9.8% avg growth
INTRINSIC VALUE TODAY
$84.23
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 14.3x Exit PE.
In-depth Analysis How we analyze
Valuation Analysis: CP is currently trading at $88.89, which is considered fair relative to its 30-day fair value range of $87.00 to $91.93. The stock's valuation (Forward PE: 14.9) is in line with its historical norms (14.3). At these levels, the market is pricing in 1.4% annual earnings growth.
Technical Outlook: Technically, CP is in a strong uptrend. The price is currently testing key support at $87.20. 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. Wall Street analysts see significant upside, with an average price target of $100.46 (+13.0%). Combining these factors, the current setup offers a favorable risk/reward ratio for buyers.
Technical Outlook: Technically, CP is in a strong uptrend. The price is currently testing key support at $87.20. 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. Wall Street analysts see significant upside, with an average price target of $100.46 (+13.0%). Combining these factors, the current setup offers a favorable risk/reward ratio for buyers.
Quick Decision Summary
Current Position
FAIR
Historical Trading Range
$87.00 -
$91.93
Company Quality Score
38/100
(SELL)
Volume Confirmation
HIGH
Confidence Score
73.3%
All Signals
- NEUTRAL: Price in fair range
- NEUTRAL: Mixed technical signals (40/100)
- BULLISH: High volume confirmation
- BULLISH: Trading below Wall St target ($100.46)
- BULLISH: Expecting earnings turnaround to 1.4% growth with -2.5% revenue growth
Trading Range Analysis
30-Day Trading Range
$87.00 -
$91.93
Current vs Trading Range
FAIR
Support & Resistance Levels
Support Level
$87.20
Resistance Level
$93.84
Current Trend
Strong Uptrend
Technical data as of
Jul 31, 2026
Fundamental Context
Forward P/E (Next Year Est.)
14.87
Wall Street Target
$100.46
(+13.0%)
Revenue Growth (YoY)
-2.5%
Earnings Growth (YoY)
-3.1%
Profit Margin
27.2%
Valuation Premium vs History
+1.4% premium
PE vs Historical
14.9 vs 14.3
FAIR
Market-Implied Price Targets
If current PE multiple persists
Implied Growth (YoY):
+1.4%
(market-implied from PE analysis)
1-Year Target
$90.13
(+1%)
2-Year Target
$91.40
(+3%)
3-Year Target
$92.68
(+4%)
3-Yr Target (if PE normalizes)
(PE: 15→14)
PE COMPRESSION
$89.12
(+0%)
Earnings growth offset by PE compression
3-Year Scenarios
Using analyst projected EPS growth
Bull:
(PE: 20.7, Growth: 15.5%)
$191.09
(+115%)
Base:
(SPY PE: 14.9, Growth: 15.5%)
$137.07
(+54%)
Bear:
(PE: 12.6, Growth: 15.5%)
$116.51
(+31%)
📈
Valuation based on Current Earnings
RECOVERY PLAY: Stock looks expensive now (30x PE), but valuation improves significantly next year (15x PE) as earnings recover.
Trailing PE: 29.99 | Current EPS (TTM): $2.94
Bull Case
$193.95
(+118%)
Analyst growth 100.0%, PE expands to 33.0
Base Case
$176.32
(+98%)
Market implied 100.0%, PE stable at 30.0
Bear Case
$59.95
(-33%)
Severe decline -20.0%, PE contracts to 25.5
These are projections based on PE multiples and EPS growth scenarios, not predictions. Actual results may vary significantly.
Share & Embed Analysis
Last updated: August 03, 2026 1:39 AM ET
Data refreshes hourly during market hours. Next update: 2:39 AM
Data refreshes hourly during market hours. Next update: 2:39 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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