Here's Why Investors Should Give Canadian Pacific Stock a Miss Now

Core Insights - Canadian Pacific Kansas City Limited (CP) is experiencing increased expenses and tariff-related challenges, making it less attractive for investors [1][9] Financial Performance - The Zacks Consensus Estimate for CP's earnings has been revised downward by 2.33% for 2025 and 2.53% for 2026 over the past 60 days, indicating a lack of confidence from brokers [2] - CP's shares have declined by 4.7% over the past year, compared to a 3.7% decline in the Transportation - Rail industry [3][9] - Total operating expenses for CP in Q3 2025 were $2.33 billion, although they fell, they remained at a high level [6] Industry Context - CP currently holds a Zacks Rank of 4 (Sell), and the industry rank is 207 out of 243, placing it in the bottom 14% of Zacks Industries [5] - The performance of CP is significantly influenced by the overall industry, as studies indicate that 50% of a stock's price movement is related to its industry group [5][6] Challenges - CP is facing significant headwinds due to elevated expenses and a volatile macroeconomic environment characterized by economic uncertainty, shifting tariff regulations, and geopolitical tensions [7][9]