TSE:CP

Canadian Pacific Rail (CP.TO)

127.62
-0.39 (0.30%)
as of Jul 10, 2026, 8:00:00 pm Market Open.
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Investor Insights
star iconJul 10, 2026, 12:00 am

This summary was created by AI, based on 25 opinions in the last 12 months.

Canadian Pacific Rail (CP) has emerged as a topic of interest among analysts, primarily due to its recent performance and strategic positioning. While some experts believe that it has strong growth potential stemming from the KSU acquisition, others express concerns about the ongoing freight recession impacting demand. The company's valuation is seen as higher compared to competitors, and its performance is tied to broader economic conditions, particularly the Canadian economy. Experts are split on whether now is a good time to buy, with several suggesting waiting for a pullback before entering. Tariff uncertainties and the effects of trade agreements like CUSMA are recurring themes in the reviews, indicating that while CP has a strong operational network, external factors could influence its short-term outlook.

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Consensus
Wait
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Valuation
Overvalued
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Similar
CNR, CNR
BUY
Company has huge pricing power and diversified business. Well positioned company going into the future. Recent acquisition will allow exposure all the way to Mexico. Would recommend buying as a long term hold for investors.
BUY
Best in class operator. Railway business under pressure given supply chain concerns, however not a major worry. Long term - company is lifeblood of Canadian economy. Continues to be one of largest holdings in portfolio. Well managed company that expects to continue to preform well.
HOLD
Great business, better than trucking. Good growth with KSU acquisition, but the risk is in the execution. Good pricing power. He owns CNR.
BUY
Allan Tong’s Discover Picks CPR split 5-for-1 on May 14, 2021. Since then, shares have edged up only 2.6%, but have popped more than $10 since the Russian war began on February 24. CP trades at a 23.82x PE and pays a 0.78% dividend. Currently, CP is trading right below $100 and is making new 52-week highs. It has jumped $10 since the war began. Given all the market volatility, wait for CP to dip before adding or entering. At the same time, don't expect explosive growth here. This is a long-term story. Read 3 Stock Splits to Watch for our full analysis.
HOLD
Railroads are doing excellently. Economy in NA is very strong. Excellent businesses. He'd want to see how the leverage ratio plays out with the KSU acquisition. If the deal closes, CP would be the growth story, and it might be the better one. He owns CNR instead.
BUY ON WEAKNESS
Debt is manageable. Acquisition of KSU is transformative, as CP will be the only Class 1 railroad that runs from Canada through the US to Mexico. Lots of opportunities. Likely to see earnings upgrades over the next 2-3 years. Rough start to the year, but he'd add on a meaningful pullback.
BUY
Company is well positioned going forward. Current share price is presenting good buying opportunity. Expecting strong financial results in 2022. Tremendous upside potential in share price.
BUY
Believes exposure to Canadian railroads is a good idea. Recent supply chain constraints shows value of railways. Will look to own more shares in company.
BUY
A core holding. Still well priced with a good growth rate of 12%. Being ignored so could add a bit.
BUY ON WEAKNESS
Canadians blessed with railroads that preform well. Great company and high quality business. Would recommend looking at stock to buy. High valuation, however good business model.
BUY
Acquisition of KSU affect dividend? Dividend payout is low. Dividend has grown 17% a year for 5 years. Earnings will grow close to 20% in 2023. Likes rails and transports. He'd be a buyer.
COMMENT
The question was on railroads. Likes Canadian railroads. Operating costs are down now. He prefers CP since it did a great job of acquiring and running Kansas City Southern. This gives them a great network of north/south as well as East/West corridors.
DON'T BUY
See also his CNR comments. He prefers CN based on PE. CP pays a better dividend though, but CP will integrate with KSU and any integration carries risks. Expect margin pressure in the first half of 2022 during inflation as costs rise.
WAIT
Trades these names. Long in the names since the sell-off in summer. Now has trimmed. No direct exposure. Looking to buy back into the lower end of the range. Call it neutral. Would buy it at 4-7% down. Be patient, and wait for better valuation.
BUY
Really likes it. Also owns CNR. Industrial exposure, but not labour intensive. Great business. CNR is under pressure to improve operational metrics. A bit pricey. For CP, lots of synergies with the KSU acquisition. Perhaps a bit more upside with CP over the next 12 months.
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