(CP) Canadian Pacific Railway - Ratings and Ratios

Canadian Pacific Kansas City Limited operates a vast transcontinental freight railway network spanning Canada, the United States, and Mexico, following its significant merger with Kansas City Southern. This merger has notably expanded its reach, particularly into Mexico, enhancing its North American presence. The network, covering approximately 20,000 miles, connects key business hubs, facilitating efficient transportation of diverse commodities. The company specializes in bulk commodities such as grain, coal, potash, fertilizers, and sulfur, as well as merchandise freight including forest products, energy, chemicals, plastics, metals, minerals, consumer goods, and automotive products. Additionally, it excels in intermodal services, efficiently managing containerized retail goods. Committed to sustainability and operational excellence, the company employs precision scheduled railroading to optimize its operations and enhance cost management. Formerly known as Canadian Pacific Railway Limited, the name change occurred in April 2023, reflecting its expanded scope. Headquartered in Calgary, Canada, since its incorporation in 1881, the company continues to be a pivotal player in North American rail transportation.

Looking ahead, the technical indicators suggest a potential bullish trend as the SMA 20 (71.72) is below the current price (74.53), while the SMA 50 (74.50) is nearing resistance. The SMA 200 (77.80) indicates a longer-term downtrend, signaling possible resistance if prices rise. The Average True Range (ATR) of 2.49 suggests price fluctuations within a $2.49 range around the current price. Fundamentally, a P/E ratio of 26.08, with a forward P/E of 21.19, hints at anticipated earnings growth. The price-to-book ratio of 2.02 reflects market valuation above book value, and a return on equity of 7.76% indicates moderate profitability. Over the next three months, if the stock breaks above the SMA 50, it may approach the SMA 200 level, facing resistance there. Conversely, failure to surpass SMA 50 could lead to a downward trend. The ATR suggests price volatility within +/- $2.49, while expectations of improved earnings could support the stock price amidst growth expectations factored into its valuation.