CP Stock Analysis: Buy, Sell, or Hold?
CP - Canadian Pacific Kansas City Limited
$87.79
1.87 (2.18%)
▲
5d:
+0.86%
30d:
-2.62%
90d:
+12.52%
BUY
MODERATE Confidence
Analysis Updated: Jul 2, 2026 12:00 AM ET
Earnings: Jul 29, 2026
25d
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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 1.7% growth. Moderate conviction.
💡 BUY OPPORTUNITY: CP shows positive signals but monitor for confirmation. Market pricing in 1.7% growth. Moderate conviction.
Long-Term Wealth Forecast (2031)
Based on Analyst Consensus Growth & Historical Valuation
0% (Stagnation)
50% (Hyper Growth)
EST. PRICE IN 2031
$130.76
Based on 9.5% avg growth
INTRINSIC VALUE TODAY
$81.19
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 $87.79, which is considered fair relative to its 30-day fair value range of $86.48 to $90.17. The stock's valuation (Forward PE: 14.9) is in line with its historical norms (14.1). At these levels, the market is pricing in 1.7% annual earnings growth.
Technical Outlook: Technically, CP is in a strong downtrend. Immediate support is located at $85.06, while resistance sits at $91.52.
Market Sentiment: The stock shows a mixed technical setup (55/100), 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. Immediate support is located at $85.06, while resistance sits at $91.52.
Market Sentiment: The stock shows a mixed technical setup (55/100), 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
FAIR
Historical Trading Range
$86.48 -
$90.17
Company Quality Score
49/100
(HOLD)
Volume Confirmation
HIGH
Confidence Score
71.0%
All Signals
- NEUTRAL: Price in fair range
- NEUTRAL: Mixed technical signals (55/100)
- BULLISH: High volume confirmation
- NEUTRAL: Near Wall St target ($90.91)
- BULLISH: Expecting earnings turnaround to 1.7% growth with -2.5% revenue growth
Trading Range Analysis
30-Day Trading Range
$86.48 -
$90.17
Current vs Trading Range
FAIR
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.)
14.86
Wall Street Target
$90.91
(+3.6%)
Revenue Growth (YoY)
-2.5%
Earnings Growth (YoY)
-3.1%
Profit Margin
27.2%
Valuation Premium vs History
+1.7% premium
PE vs Historical
14.9 vs 14.1
FAIR
Market-Implied Price Targets
If current PE multiple persists
Implied Growth (YoY):
+1.7%
(market-implied from PE analysis)
1-Year Target
$89.28
(+2%)
2-Year Target
$90.80
(+3%)
3-Year Target
$92.34
(+5%)
3-Yr Target (if PE normalizes)
(PE: 15→14)
PE COMPRESSION
$87.65
(0%)
Earnings growth offset by PE compression
3-Year Scenarios
Using analyst projected EPS growth
Bull:
(PE: 21.8, Growth: 15.0%)
$195.91
(+123%)
Base:
(SPY PE: 14.9, Growth: 15.0%)
$133.62
(+52%)
Bear:
(PE: 12.6, Growth: 15.0%)
$113.58
(+29%)
📈
Valuation based on Current Earnings
RECOVERY PLAY: Stock looks expensive now (27x PE), but valuation improves significantly next year (15x PE) as earnings recover.
Trailing PE: 27.28 | Current EPS (TTM): $3.15
Bull Case
$177.31
(+102%)
Analyst growth 87.6%, PE expands to 30.0
Base Case
$161.19
(+84%)
Market implied 87.6%, PE stable at 27.3
Bear Case
$58.43
(-33%)
Severe decline -20.0%, PE contracts to 23.2
These are projections based on PE multiples and EPS growth scenarios, not predictions. Actual results may vary significantly.
Share & Embed Analysis
Last updated: July 03, 2026 5:12 PM ET
Data refreshes hourly during market hours. Next update: 6:12 PM
Data refreshes hourly during market hours. Next update: 6:12 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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