CP Stock Analysis: Buy, Sell, or Hold?
CP - Canadian Pacific Kansas City Limited
$74.34
-1.50 (-1.98%)
▼
BUY
MODERATE Confidence
Last Updated: January 30, 2026
Earnings: Apr 28, 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 1.6% annual growth which appears achievable. Moderate conviction.
💡 BUY OPPORTUNITY: CP shows positive signals but monitor for confirmation. Market pricing in 1.6% annual growth which appears achievable. Moderate conviction.
Long-Term Wealth Forecast (2031)
Based on Analyst Consensus Growth & Historical Valuation
0% (Stagnation)
50% (Hyper Growth)
EST. PRICE IN 2031
$110.66
Based on 8.9% avg growth
INTRINSIC VALUE TODAY
$68.71
Trading above fair value
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 13.7x Exit PE.
In-depth Analysis How we analyze
Valuation Analysis: CP is currently trading at $74.34, which is considered slightly high relative to its 30-day fair value range of $71.51 to $74.39. The stock's valuation (Forward PE: 14.3) is in line with its historical norms (13.7). At these levels, the market is pricing in 1.6% annual earnings growth. This growth rate appears achievable given the company's track record, suggesting the valuation is rational.
Technical Outlook: Technically, CP is in a strong downtrend. The price is approaching resistance at $75.93. 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 (60/100), with favorable trendlines, momentum, and price action for short-term traders. Wall Street analysts see significant upside, with an average price target of $89.09 (+17.5%). 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 $75.93. 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 (60/100), with favorable trendlines, momentum, and price action for short-term traders. Wall Street analysts see significant upside, with an average price target of $89.09 (+17.5%). Combining these factors, the current setup offers a favorable risk/reward ratio for buyers.
Quick Decision Summary
Current Position
SLIGHTLY HIGH
Fair Price Range
$71.51 -
$74.39
Company Quality Score
64/100
(BUY)
Volume Confirmation
HIGH
Confidence Score
74.8%
All Signals
- BULLISH: Strong technical setup (60/100)
- BULLISH: High volume confirmation
- BULLISH: Trading below Wall St target ($89.09)
- NEUTRAL: Market pricing in 1.6% annual earnings growth - fairly valued
Fair Price Analysis
30-Day Fair Range
$71.51 -
$74.39
Current vs Fair Value
SLIGHTLY HIGH
Support & Resistance Levels
Support Level
$70.12
Resistance Level
$75.93
Current Trend
Strong Downtrend
Fundamental Context
Forward P/E (Next Year Est.)
14.34
Wall Street Target
$89.09
(+17.5%)
Revenue Growth (YoY)
3.2%
Earnings Growth (YoY)
12.6%
Profit Margin
28.4%
Valuation Premium vs History
+1.6% premium
PE vs Historical
14.3 vs 13.7
FAIR
Market-Implied Price Targets
If current PE multiple persists
Implied Growth (YoY):
+1.6%
(market-implied from PE analysis)
1-Year Target
$77.05
(+2%)
2-Year Target
$78.29
(+3%)
3-Year Target
$79.54
(+5%)
3-Yr Target (if PE normalizes)
(PE: 14→14)
PE COMPRESSION
$75.97
(+0%)
Earnings growth offset by PE compression
3-Year Scenarios
Using analyst projected EPS growth
Bull:
(PE: 22.3, Growth: 13.8%)
$173.86
(+129%)
Base:
(SPY PE: 14.3, Growth: 13.8%)
$111.83
(+48%)
Bear:
(PE: 12.2, Growth: 13.8%)
$95.06
(+25%)
📈
Valuation based on Current Earnings
RECOVERY PLAY: Stock looks expensive now (21x PE), but valuation improves significantly next year (14x PE) as earnings recover.
Trailing PE: 21.24 | Current EPS (TTM): $3.38
Bull Case
$123.51
(+66%)
Analyst growth 56.4%, PE expands to 23.4
Base Case
$112.28
(+51%)
Market implied 56.4%, PE stable at 21.2
Bear Case
$48.81
(-34%)
Severe decline -20.0%, PE contracts to 18.1
These are projections based on PE multiples and EPS growth scenarios, not predictions. Actual results may vary significantly.
Last updated: January 31, 2026 1:46 AM ET
Data refreshes hourly during market hours. Next update: 2:46 AM
Data refreshes hourly during market hours. Next update: 2:46 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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