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Investor Insights

This summary was created by AI, based on 34 opinions in the last 12 months.

Based on the reviews from different experts, it can be concluded that Canadian Pacific Rail (CP-T) is seen as a strong and robust company with a defensive nature. The recent M&A with Kansas City has been viewed positively, and the company is expected to benefit from the expansion in North-South, East-West network. While some experts have concerns about economic sensitivity and potential recession, the general sentiment is that CP has a strong long-term growth potential with a steady dividend and double-digit earnings growth expected.

Consensus
Bullish
Valuation
Undervalued
PAST TOP PICK
(A Top Pick Jul 27/23, Up 3%)

He sold. Likes it long term, technical trends are still there. However, missed Q1 in April. Half of revenues come from Canada, and he sees a sluggish Canadian economy going forward. 

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WATCH

Pace of lows has slowed a bit, narrowing to what's called a "falling wedge". It it can break out to the upside, that would be really bullish, say a close above $80. If it continues to carry downwards, the $75 round number is coming up, looks like a bit of support around $72.50, and then larger support around Oct/Nov lows in high $60s.

Important thing is we're also still keeping an eye on the transports going into the summer and what do they mean for the economy. Seeing signs of stagflation -- economy slowing in US and Canada, but inflation remains high.

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BUY ON WEAKNESS

Enjoys an oligopoly, but prefers CP which has a better footprint though you pay a higher multiple, which its growth justifies. Long term, CP will be a bigger winner. CN remains a fine business. He added on weakness. Sometimes it's worth buying momentum, but so is buying on pullback.

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HOLD

Likes the rail industry, essentially an oligopoly, can't replicate rail infrastructure. A "soft" cyclical -- pricing power, transports diverse goods. Synergies and cost savings from acquisition. Even though economy is slowing, they carry necessary goods, so OK as long as not an outright recession. You can hold rails through the cycle. She owns CNR.

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PAST TOP PICK
(A Top Pick Jun 01/23, Up 4%)

Their assets are irreplaceable. Buying KC Southern will take longer than expected to absorb, but eventually, they will offer a huge network across North America. Great managers and company. Be patient.

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BUY ON WEAKNESS

Peak at beginning of year, then down pretty significantly, 12% haircut. Next level to look at is $95-96 range, give or take $3. Perhaps even as low as $90. 

Always look at RSI against the S&P, and since 2023, rails have been down against the S&P. Now the rails are separating themselves from the S&P, so he expects a bit more weakness. Rails are usually good long-term stocks to buy.

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HOLD

Not a lot of competition, CNR is the only similar competitor. Barrier to competing is nearly insurmountable. Not founder-run, founder-own. Excellent job compounding shareholder wealth over the long term. Strong company, wide moat, expect 10-15% compounding long term.

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BUY

Buy this one over CNR, hands down. Trades almost at 1.0 on price to growth.

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Unspecified

The valuation is up to the mid 20's but it is typically 20 to 21 along with CN which is trading around that level now. The valuation is higher because of its major acquisition and better growth prospects. However the growth rate is probably not sustainable. He prefers CN because of its better valuation. In general railways' profit margins are good, over 20 % on the average.

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WEAK BUY
CP vs. CNR

Rails in NA are an oligopoly. CP acquisition of Kansas City Southern is probably the last one we'll see in NA. Can't really go wrong with either. CNR valuation is more appealing. Industry has lots of tailwinds. 

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BUY

A bit soft recently on the back of earnings. Not building any more rails, cheapest way to transport lots of stuff including commodities. Likes it. Would add here. Rates have been fairly strong. Almost at full capacity.

Both CNR and CP are core holdings for him. He "likes his children equally", though for different reasons.

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COMMENT

He sold this recently. It is a great company but the valuation is too high: 23 or 24 times this year's expected earnings. There are some cyclical headwinds in the short term and there is the Kansas City acquisition. Also there are warning flags on operating efficiencies.

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BUY

Commodity strength will be good for business. Top Canadian railway pick. Excellent business with strong business fundamentals. Core holding in portfolio. Will hold for long term. 

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HOLD

Railroads indicative of economic conditions - current share price reflecting economy. Recent M&A has panned out well. Expects demand for railways to continue. A defensive name, better options for major capital appreciation. Modest dividend that is relatively safe. 

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COMMENT

She likes the railways but doesn't own them since they are economically sensitive. If choosing between them she would pick CN since historically it has a better management team and a better dividend - 2% as opposed to CP's 0.7%. Also CP is still digesting its large Kansas City acquisition.

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Canadian Pacific Rail(CP-T) Rating

Ranking : 5 out of 5

Bullish - Buy Signals / Votes : 19

Neutral - Hold Signals / Votes : 6

Bearish - Sell Signals / Votes : 4

Total Signals / Votes : 29

Stockchase rating for Canadian Pacific Rail is calculated according to the stock experts' signals. A high score means experts mostly recommend to buy the stock while a low score means experts mostly recommend to sell the stock.

Canadian Pacific Rail(CP-T) Frequently Asked Questions

What is Canadian Pacific Rail stock symbol?

Canadian Pacific Rail is a Canadian stock, trading under the symbol CP-T on the Toronto Stock Exchange (CP-CT). It is usually referred to as TSX:CP or CP-T

Is Canadian Pacific Rail a buy or a sell?

In the last year, 29 stock analysts published opinions about CP-T. 19 analysts recommended to BUY the stock. 4 analysts recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for Canadian Pacific Rail.

Is Canadian Pacific Rail a good investment or a top pick?

Canadian Pacific Rail was recommended as a Top Pick by on . Read the latest stock experts ratings for Canadian Pacific Rail.

Why is Canadian Pacific Rail stock dropping?

Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.

Is Canadian Pacific Rail worth watching?

29 stock analysts on Stockchase covered Canadian Pacific Rail In the last year. It is a trending stock that is worth watching.

What is Canadian Pacific Rail stock price?

On 2024-07-15, Canadian Pacific Rail (CP-T) stock closed at a price of $114.22.