Canadian Pacific Rail (CP.TO) Buy, Sell or Hold

Canadian Pacific Rail (CP.TO)

120.81

-0.80 (0.66%)

as of Jun 19, 2026, 8:00:01 pm Market Open.

305 watching

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.

COMMENT

If economy recovers, will see increase in railroad stocks. Stock price will go sideways until Kansas City acquisition and board troubles resolved.

COMMENT

CN Rail vs. CP Rail Asked to choose between these two. It's a close call. The railway business has been very resilient over many years. CP is much more exposed to grain which had a bad year. They also made a huge acquisition of Kansas City S which is dilutive in the short term but accretive over time. CN does not have this kind of uncertainty and not as much grain exposure so he would side with CN

BUY ON WEAKNESS

Great businesses however, thinks that railroad stocks (CP & CN) are overvalued. Growth outlooks don't justify valuations. Wait to buy on a pullback. Free cash flow yields are too low low (~3.5%) 20x earnings an attractive point of entry.

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Canadian Pacific Rail (CP.TO)