TSE:CP

Canadian Pacific Rail (CP.TO)

124.52
+1.21 (0.98%)
as of Jul 31, 2026, 8:00:00 pm Market Open.
640 watching
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Investor Insights
star iconJul 31, 2026, 12:00 am

This summary was created by AI, based on 27 opinions in the last 12 months.

Experts generally view Canadian Pacific Rail (CP-T) as a solid long-term investment, though opinions on timing for entry vary. Many see potential growth following the Kansas City Southern (KSU) acquisition, which strengthens CP's network across Canada, the US, and Mexico. However, concerns about cyclical recession and tariff impacts from trade negotiations linger, creating uncertainty around short-term performance. Analysts' price targets suggest some upside potential, with estimates around $120 to $132. Overall, CP's robust positioning in the rail industry and operational efficiencies are likely to benefit it long-term, although some analysts prefer Canadian National Railway (CNR) based on valuation metrics and dividend yields. Investors are encouraged to consider the market environment and potential pullbacks before making any purchase decisions.

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Consensus
Buy
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Valuation
Fair Value
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Similar
CNR,CP
BUY ON WEAKNESS
Hold and buy more on pullbacks. The rails have kind of recovered. They've shown how resilient their networks are and how essential they are to the economy. The repoening will see stronger demand for indsutrial goods and this will benefit the rail stocks.
BUY

CP vs CN The CP stock split isn't an issue. He prefers CP in the short term. Late CEO Hunter Harrison turned CN around and his legacy remains as CN continues to reduce costs and do very well. Harrison didn't helm CP until later, around 2012, so CP is a bit behind. CP has good exposure shipping crude, and this business should pick up in summer as more people drive and burn gas during the reopening. He prefers CP which will deliver 10-15% returns vs. CN's 5-10% in the coming year.

BUY
Rails don't actually benefit over the long term, but CP-T has been performing quite well recently. We are in their seasonal strength period.
HOLD
The rails as a whole have been a great category. They almost have monopolistic attributes. This has got a lot of investors excited and is a core holding in so many portfolios. He does not pay too much attention to it but, keep on holding it as it will move higher over the longer term.
BUY
His #1 choice in North America. Growth opportunities, best in class management, very strong track record of bringing operating ratio lower.
BUY
Very strong. Growth pipeline is best in class. Management has consistently improved profitability. Not as coal-exposed as rails in the US.
BUY

CP has a better operating ratio, so he owns that instead. CP also has more exposure to commodities. Both have enjoyed good numbers last quarter and both trade at a decent PE. But headwinds: a possible slowdown in the global economy, and CN has more issues in the intermodal. He's neutral about CNR. (He doesn't like stop losses.) He likes, doesn't love, this sector.

WEAK BUY

He owns CNR instead. Some of the best businesses ever. Can increase prices, diversify. Hard to compete against them. E-commerce explosion has created backlogs. Good stocks to own going forward. Quality company, good management. Sees many years of good returns.

BUY ON WEAKNESS

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. Generally a good economic recovery play. Between CNR and CP, both are good. CP is cheaper today. Unlock Premium - Try 5i Free

HOLD

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. The decline today was due to an intermodel traffic report, showing that many rails showed declining volumes last week. However, CP did show gains compared to others. There is no other news. The stock rose to $23 in the three days prior to today's $9 decline. Unlock Premium - Try 5i Free

BUY

CNR-T vs. CP-T. It has always been a coin flip. He has always chosen CNR-T. You can't go wrong with either of them and they both continue to raise their dividends. He owns more CNR-T than CP-T.

BUY

Transportation Companies? In light of e-commerce. Transportation is doing well. CNR-T and CP-T just keep going up. His model price is $161 or 14% upside on CNR-T. CP-T has a model price of $466.84 or a 15% upside.

BUY

Canadian rails enjoy a duopoly, but we know that grains and other resources will get shipped. CP is more efficient than CN, and is very well-run. He owns CNR. Investors should own either.

TOP PICK
The transport sector is starting to gain steam (see the IYT ETF), the rails have been the strength, and CP is the cream of the crop in rails. They've increased their dividend in a middle of a global pandemic, and have increased their guidance (i.e. YOY earnings growth). They improved their operating ratio this quarter. Volumes will pick up which will increase their margins. They transport mostly east-west resources, and we're at the bottom of the resource cycle. Offers good dividend growth, too. (Analysts’ price target is $389.49)
PAST TOP PICK
(A Top Pick Jun 27/19, Up 3%) This one has been resilient. He would continue to buy it. We have to move goods and it benefits from trade overseas. The relative strength has been quite good.
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