CP Stock Analysis: Buy, Sell, or Hold?
CP - Canadian Pacific Kansas City Limited
$89.12
-1.03 (-1.14%)
▼
5d:
-2.34%
30d:
+7.21%
90d:
+2.66%
BUY
MODERATE Confidence
Analysis Updated: Jun 3, 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 OPPORTUNITY: CP shows positive signals but monitor for confirmation. Market pricing in 2.6% growth. Moderate conviction.
💡 BUY OPPORTUNITY: CP shows positive signals but monitor for confirmation. Market pricing in 2.6% growth. Moderate conviction.
Long-Term Wealth Forecast (2031)
Based on Analyst Consensus Growth & Historical Valuation
0% (Stagnation)
50% (Hyper Growth)
EST. PRICE IN 2031
$129.04
Based on 9.5% avg growth
INTRINSIC VALUE TODAY
$80.12
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 14.0x Exit PE.
In-depth Analysis How we analyze
Valuation Analysis: CP is currently trading at $89.12, which is considered extended relative to its 30-day fair value range of $84.76 to $88.84. The stock's valuation (Forward PE: 15.1) is in line with its historical norms (14.0). At these levels, the market is pricing in 2.6% annual earnings growth.
Technical Outlook: Technically, CP is in a strong downtrend. The price is approaching resistance at $91.50. A breakout above this level would be a bullish signal, while rejection here could lead to consolidation.
Market Sentiment: CP has a strong technical setup (75/100), with favorable trendlines, momentum, and price action for short-term traders. 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 approaching resistance at $91.50. A breakout above this level would be a bullish signal, while rejection here could lead to consolidation.
Market Sentiment: CP has a strong technical setup (75/100), with favorable trendlines, momentum, and price action for short-term traders. Combining these factors, the current setup offers a favorable risk/reward ratio for buyers.
Quick Decision Summary
Current Position
EXTENDED
Historical Trading Range
$84.76 -
$88.84
Company Quality Score
67/100
(BUY)
Volume Confirmation
HIGH
Confidence Score
60.5%
All Signals
- BEARISH: Price extended above range
- BULLISH: Strong technical setup (75/100)
- BULLISH: High volume confirmation
- NEUTRAL: Near Wall St target ($90.97)
- BULLISH: Expecting earnings turnaround to 2.6% growth with -2.5% revenue growth
Trading Range Analysis
30-Day Trading Range
$84.76 -
$88.84
Current vs Trading Range
EXTENDED
Support & Resistance Levels
Support Level
$85.29
Resistance Level
$91.50
Current Trend
Strong Downtrend
Technical data as of
Jun 3, 2026
Fundamental Context
Forward P/E (Next Year Est.)
15.14
Wall Street Target
$90.97
(+2.1%)
Revenue Growth (YoY)
-2.5%
Earnings Growth (YoY)
-3.1%
Profit Margin
27.2%
Valuation Premium vs History
+2.6% premium
PE vs Historical
15.1 vs 14.0
FAIR
Market-Implied Price Targets
If current PE multiple persists
Implied Growth (YoY):
+2.6%
(market-implied from PE analysis)
1-Year Target
$91.44
(+3%)
2-Year Target
$93.81
(+5%)
3-Year Target
$96.25
(+8%)
3-Yr Target (if PE normalizes)
(PE: 15→14)
PE COMPRESSION
$89.01
(0%)
Earnings growth offset by PE compression
3-Year Scenarios
Using analyst projected EPS growth
Bull:
(PE: 21.9, Growth: 14.9%)
$195.54
(+119%)
Base:
(SPY PE: 15.1, Growth: 14.9%)
$135.12
(+52%)
Bear:
(PE: 12.9, Growth: 14.9%)
$114.85
(+29%)
📈
Valuation based on Current Earnings
RECOVERY PLAY: Stock looks expensive now (28x PE), but valuation improves significantly next year (15x PE) as earnings recover.
Trailing PE: 28.08 | Current EPS (TTM): $3.25
Bull Case
$181.82
(+101%)
Analyst growth 81.1%, PE expands to 30.9
Base Case
$165.29
(+82%)
Market implied 81.1%, PE stable at 28.1
Bear Case
$62.06
(-32%)
Severe decline -20.0%, PE contracts to 23.9
These are projections based on PE multiples and EPS growth scenarios, not predictions. Actual results may vary significantly.
Share & Embed Analysis
Last updated: June 03, 2026 6:21 PM ET
Data refreshes hourly during market hours. Next update: 7:21 PM
Data refreshes hourly during market hours. Next update: 7:21 PM
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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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