CP Stock Analysis: Buy, Sell, or Hold?
CP - Canadian Pacific Kansas City Limited
$85.07
-1.83 (-2.11%)
▼
5d:
-1.13%
30d:
+6.15%
90d:
+1.54%
BUY
MODERATE Confidence
Analysis Updated: May 15, 2026 12:00 AM ET
Earnings: Apr 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 1.3% growth. Moderate conviction.
💡 BUY OPPORTUNITY: CP shows positive signals but monitor for confirmation. Market pricing in 1.3% growth. Moderate conviction.
Long-Term Wealth Forecast (2031)
Based on Analyst Consensus Growth & Historical Valuation
0% (Stagnation)
50% (Hyper Growth)
EST. PRICE IN 2031
$128.11
Based on 9.5% avg growth
INTRINSIC VALUE TODAY
$79.55
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 13.9x Exit PE.
In-depth Analysis How we analyze
Valuation Analysis: CP is currently trading at $85.07, which is considered slightly high relative to its 30-day fair value range of $81.29 to $86.21. The stock's valuation (Forward PE: 14.4) is in line with its historical norms (13.9). At these levels, the market is pricing in 1.3% annual earnings growth.
Technical Outlook: Technically, CP is in a strong downtrend. The price is currently testing key support at $82.65. 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 (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. The price is currently testing key support at $82.65. 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 (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
SLIGHTLY HIGH
Historical Trading Range
$81.29 -
$86.21
Company Quality Score
60/100
(BUY)
Volume Confirmation
HIGH
Confidence Score
63.8%
All Signals
- NEUTRAL: Mixed technical signals (55/100)
- BULLISH: High volume confirmation
- NEUTRAL: Near Wall St target ($91.67)
- BULLISH: Expecting earnings turnaround to 1.3% growth with -2.5% revenue growth
Trading Range Analysis
30-Day Trading Range
$81.29 -
$86.21
Current vs Trading Range
SLIGHTLY HIGH
Support & Resistance Levels
Support Level
$82.65
Resistance Level
$87.72
Current Trend
Strong Downtrend
Technical data as of
May 15, 2026
Fundamental Context
Forward P/E (Next Year Est.)
14.45
Wall Street Target
$91.67
(+7.8%)
Revenue Growth (YoY)
-2.5%
Earnings Growth (YoY)
-3.1%
Profit Margin
27.2%
Valuation Premium vs History
+1.3% premium
PE vs Historical
14.5 vs 13.9
FAIR
Market-Implied Price Targets
If current PE multiple persists
Implied Growth (YoY):
+1.3%
(market-implied from PE analysis)
1-Year Target
$86.18
(+1%)
2-Year Target
$87.30
(+3%)
3-Year Target
$88.43
(+4%)
3-Yr Target (if PE normalizes)
(PE: 14→14)
PE COMPRESSION
$85.05
(0%)
Earnings growth offset by PE compression
3-Year Scenarios
Using analyst projected EPS growth
Bull:
(PE: 22.1, Growth: 14.9%)
$196.97
(+132%)
Base:
(SPY PE: 14.5, Growth: 14.9%)
$128.98
(+52%)
Bear:
(PE: 12.3, Growth: 14.9%)
$109.63
(+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: 26.57 | Current EPS (TTM): $3.27
Bull Case
$172.07
(+102%)
Analyst growth 80.0%, PE expands to 29.2
Base Case
$156.43
(+84%)
Market implied 80.0%, PE stable at 26.6
Bear Case
$59.09
(-31%)
Severe decline -20.0%, PE contracts to 22.6
These are projections based on PE multiples and EPS growth scenarios, not predictions. Actual results may vary significantly.
Share & Embed Analysis
Last updated: May 15, 2026 9:43 PM ET
Data refreshes hourly during market hours. Next update: 10:43 PM
Data refreshes hourly during market hours. Next update: 10:43 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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