TSE:CP

Canadian Pacific Rail (CP.TO)

122.41
-1.78 (1.43%)
as of Sep 18, 2026, 8:00:01 pm Market Open.
642 watching
0
TOP PICK
Top Short Last quarter was their 1st miss in some time but it was a big one. Cockroach theory is that if you see one, there’s another behind the fridge. Increased costs and reduced volumes are a problem.
COMMENT
Moves commodities. A slowdown of the economy will create some slowdown in the rails. Expect to see more downside in the near term but longer term, you are getting to valuation levels that is attractive.
BUY
Cheap at 13/14X next year's earnings. Earnings growth has tailed off a little bit with the slowdown in the US economy.
BUY
Expensive oil is positive for the rails. They are about 4 times more efficient than trucks per ton-mile of freight. Rails are going to make a lot of money hauling commodities. Everybody should own one of them.
BUY
Liked that its exposure was more in Canada, unlike Canadian National (CNR-T) that had north/south traffic. Rails are really making money now in shipping grains, commodities, etc. Not that expensive.
DON'T BUY
(Market Call Minute.) Model price is $66.21 giving it a -8% differential.
BUY
(Market Call Minute.) Poor earnings today on weather and economic conditions in the US but a good long-term company to own.
COMMENT
Canadian National (See comments under (CNR-T)) and CP are both going to have difficult 1st quarters. Weather wasn't great. If you have a longer-term view, you could hold it. If you want to try and be tricky, Sell before they report because the numbers will disappoint.
COMMENT
The railroad sector is very strong right now, especially in the US. Canadian National (CNR-T) and Canadian Pacific (CP-T) are not trading very well right now and he is not sure why. He prefers Canadian Pacific.
TOP PICK
If you are a believer in the commodity bull market story, particularly agricultural, this is a way to play it. Has gone nowhere over the last year as people worried about sensitivity of rails, but it's up 8.5% this year.
SELL
In the short term, he would be out of the rails. Thinks they will miss the area of expectation for the next couple of quarters. They are great longer-term plays.
TOP PICK
Thinks you are buying a little more for your $1 as opposed to Canadian National (CNR-T). One of the major shippers of potash, grains and coal. Less exposed to the US market. Thanks earnings are going to grow from the $4.30 area to over $5 in the next 2 years.
TOP PICK
They are in the sweet spot. If there is growth anywhere in the world, it's in overseas trade. They have potash, grain and coal shipping. They are the only ones of the major railroads that are seeing an increase in loaded cars. A way to play international growth with a Canadian company.
BUY
There is strong demand for resources. Also have more of an East/West capacity than Canadian National (CNR-T).
COMMENT
Rails are very economically sensitive. Truckers and rails are like the canaries in the mines. If there is any downturn, they will feel it. Less exposed to the US economy then Canadian national (CNR-T), but a bigger commodity exposure. When the US turns around, CNR will outperform.
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