The stock price of Canadian Pacific Kansas City Limited (NYSE: CP) has dropped by -1.26 compared to previous close of 80.70. Despite this, the company has seen a gain of 2.57% in its stock price over the last five trading days. prnewswire.com reported 2025-01-27 that CALGARY, AB, Jan. 27, 2025 /PRNewswire/ – Canadian Pacific Kansas City (TSX: CP) (NYSE: CP) (CPKC) today said it has reached a tentative four-year collective agreement with Unifor representing approximately 1,200 employees at CPKC in Canada. “We are pleased to have reached a tentative collective agreement at the negotiating table with our mechanical employees in Canada,” said Keith Creel, CPKC President and Chief Executive Officer.
Is It Worth Investing in Canadian Pacific Kansas City Limited (NYSE: CP) Right Now?
The price-to-earnings ratio for Canadian Pacific Kansas City Limited (NYSE: CP) is 28.63x, which is above its average ratio. Moreover, the 36-month beta value for CP is 0.97. Analysts have varying opinions on the stock, with 17 analysts rating it as a “buy,” 8 as “overweight,” 9 as “hold,” and 0 as “sell.”
The public float for CP is 933.08M and currently, short sellers hold a 0.76% of that float. On January 28, 2025, CP’s average trading volume was 3.00M shares.
CP’s Market Performance
The stock of Canadian Pacific Kansas City Limited (CP) has seen a 2.57% increase in the past week, with a 8.59% rise in the past month, and a 1.49% gain in the past quarter. The volatility ratio for the week is 2.04%, and the volatility levels for the past 30 days are at 1.68% for CP. The simple moving average for the past 20 days is 5.07% for CP’s stock, with a 0.12% simple moving average for the past 200 days.
Analysts’ Opinion of CP
Many brokerage firms have already submitted their reports for CP stocks, with Wolfe Research repeating the rating for CP by listing it as a “Outperform.” The predicted price for CP in the upcoming period, according to Wolfe Research is $86 based on the research report published on January 08, 2025 of the current year 2025.
Stephens, on the other hand, stated in their research note that they expect to see CP reach a price target of $88. The rating they have provided for CP stocks is “Overweight” according to the report published on January 06th, 2025.
Susquehanna gave a rating of “Positive” to CP, setting the target price at $92 in the report published on October 24th of the previous year.
CP Trading at 5.98% from the 50-Day Moving Average
After a stumble in the market that brought CP to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -12.99% of loss for the given period.
Volatility was left at 1.68%, however, over the last 30 days, the volatility rate increased by 2.04%, as shares surge +9.30% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading +3.97% upper at present.
During the last 5 trading sessions, CP rose by +2.91%, which changed the moving average for the period of 200-days by -9.24% in comparison to the 20-day moving average, which settled at $75.85. In addition, Canadian Pacific Kansas City Limited saw 10.10% in overturn over a single year, with a tendency to cut further gains.
Stock Fundamentals for CP
Current profitability levels for the company are sitting at:
- 0.36 for the present operating margin
- 0.42 for the gross margin
The net margin for Canadian Pacific Kansas City Limited stands at 0.25. The total capital return value is set at 0.07. Equity return is now at value 8.23, with 4.31 for asset returns.
Based on Canadian Pacific Kansas City Limited (CP), the company’s capital structure generated 0.33 points at debt to capital in total, while cash flow to debt ratio is standing at 0.22. The debt to equity ratio resting at 0.5. The interest coverage ratio of the stock is 6.4.
Currently, EBITDA for the company is -739.0 million with net debt to EBITDA at 2.91. When we switch over and look at the enterprise to sales, we see a ratio of 8.89. The receivables turnover for the company is 7.44for trailing twelve months and the total asset turnover is 0.18. The liquidity ratio also appears to be rather interesting for investors as it stands at 0.53.
Conclusion
To wrap up, the performance of Canadian Pacific Kansas City Limited (CP) has been better in recent times. The stock has received a mixed of “buy” and “hold” ratings from analysts. It is worth mentioning that the stock is currently trading in close proximity to its 50-day moving average and its 52-week high.
