Kansas City Southern (KSU) Reaches New Lifetime High Today
Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.Trade-Ideas LLC identified Kansas City Southern (KSU) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Kansas City Southern as such a stock due to the following factors:
- KSU has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $89.6 million.
- KSU has traded 583,257 shares today.
- KSU is trading at a new lifetime high.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in KSU with the Ticky from Trade-Ideas. See the FREE profile for KSU NOW at Trade-IdeasMore details on KSU: Kansas City Southern, through its subsidiaries, engages in the freight rail transportation business. The stock currently has a dividend yield of 0.7%. KSU has a PE ratio of 41.0. Currently there are 4 analysts that rate Kansas City Southern a buy, 1 analyst rates it a sell, and 7 rate it a hold.The average volume for Kansas City Southern has been 656,000 shares per day over the past 30 days. The stock has a beta of 1.36 and a short float of 1.9% with 2.94 days to cover. Shares are up 46.9% year to date as of the close of trading on Monday.STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.TheStreetRatings.com Analysis:TheStreet Quant Ratings rates Kansas City Southern as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, growth in earnings per share, increase in net income, good cash flow from operations and expanding profit margins. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.Highlights from the ratings report include:
- KSU's revenue growth has slightly outpaced the industry average of 3.4%. Since the same quarter one year prior, revenues slightly increased by 7.7%. Growth in the company's revenue appears to have helped boost the earnings per share.
- KANSAS CITY SOUTHERN has improved earnings per share by 30.5% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, KANSAS CITY SOUTHERN increased its bottom line by earning $3.42 versus $3.00 in the prior year. This year, the market expects an improvement in earnings ($4.08 versus $3.42).
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the Road & Rail industry average. The net income increased by 31.4% when compared to the same quarter one year prior, rising from $90.10 million to $118.40 million.
- Net operating cash flow has increased to $246.10 million or 19.52% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 3.93%.
- 41.43% is the gross profit margin for KANSAS CITY SOUTHERN which we consider to be strong. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 19.04% trails the industry average.
- You can view the full Kansas City Southern Ratings Report.
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.
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