TSE:CP

Canadian Pacific Rail (CP.TO)

122.96
-1.50 (1.21%)
as of Sep 10, 2026, 8:00:00 pm Market Open.
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Investor Insights
star iconSep 10, 2026, 12:00 am

This summary was created by AI, based on 22 opinions in the last 12 months.

Experts present a mixed perspective on Canadian Pacific Rail (CP). Many believe the company is well-positioned for long-term growth due to its extensive network, particularly after the KSU acquisition, which enhances its North American footprint. Tariff concerns related to CUSMA negotiations remain a common theme, although several analysts argue that these factors are ultimately noise affecting stock prices in the short term rather than the long-term fundamentals. While some suggest waiting for a pullback before investing, there is general optimism about the company's ability to thrive amidst economic fluctuations. Analysts indicate potential for future earnings growth, but caution investors about a freight recession and industry conditions affecting performance.

consensus icon
Consensus
Cautious
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Valuation
Fair Value
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Similar
CNR
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.
BUY

He has CNR-T. The rail business is great. They have pretty good pricing power. It is not a business that can be duplicated. It is cheaper and more environmentally friendly to ship things by rail.

PAST TOP PICK
(A Top Pick Jun 27/19, Up 18%) Kansas City Southern and CP have both come out of multi-year consolidations and will benefit from a stronger economy and pick-up in trade.
BUY

CP-T vs. CNR-T. He likes the rails. There is no possibility of another national rail network in the US or Canada. He thinks CP-T has more levers to pull to offset volume declines in 2020. They have more projects they can do to offset mining sector headwinds.

BUY

CP-T vs. CNR-T. CP-T was at $220 in 2014 and broke out from there last year. It consolidated for 5 years. This is a great way to participate in economic growth.

BUY

CP vs. CN Own both, but he prefers the cheaper CP. Same growth rate; he sees 10% EPS growth. Crude by rail will extend to 10 years and not stop soon. CP's balance sheet is weaker, though. CN trades at 18x PE, CP and 15.6x.

BUY
Impact of pipelines? Has done very well. Rails are seasonal now to April. The pipeline impact won't be immediate, but long-term, when the pipelines are nearly completed. CP is in an uptrend now. He likes CP.
COMMENT
They mostly run east-west and are commodity-oriented. So, if oil shipping declines, so will CP's earnings. The rails are a bet on the Canadian economy continuing to do well and we don't fall into recession. But if markets drop 20-40% and the economy tanks, so will rails fall.
PAST TOP PICK
(A Top Pick Dec 19/18, Up 36%) They had very good looking growth back then. The multiples still look like pretty good value. If recent manufacturing weakness does not spill into the full economy you could buy here as we..
COMMENT
She owns CN instead, because it's the best rail in the industry. The rails have had a nice lift this year. CP has been investing in capacity this year. The rails will continue to benefit from crude-by-rail.
BUY

CP-T vs. CNR-T. He owns CP-T and not CNR-T although both are excellent. He prefers Canadian rails to US rails. Both just reported modest volume headwinds but CNR-T had to cut their guidance and CP-T did not. The cuts are transitory in nature for both but over the next couple of years CP-T is positioned better to navigate through these volume headwinds.

BUY

CNR-T vs. CP-T. He is optimistic with respect to the rails. You get about 3/4ths of your lift when the industry picks up. CNR-T is slightly better than CP-T but the difference is not massive.

PAST TOP PICK
(A Top Pick Aug 13/19, Down 7%) This year, it had an uptrend, then has consolidated since June. There's more downside to come. We are testing support levels now. He still likes it.
PAST TOP PICK
(A Top Pick Oct 11/18, Up 13%) He is getting indications that it is starting to run out of gas and he sold it in his fund. It is not an active candidate for purchase.
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