Kansas City Southern Inc. (KSU): Today's Featured Transportation Winner

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

Kansas City Southern ( KSU) pushed the Transportation industry higher today making it today's featured transportation winner. The industry as a whole closed the day down 0.1%. By the end of trading, Kansas City Southern rose $1.22 (1.5%) to $81.25 on heavy volume. Throughout the day, 1.4 million shares of Kansas City Southern exchanged hands as compared to its average daily volume of 837,000 shares. The stock ranged in a price between $79.95-$81.80 after having opened the day at $80 as compared to the previous trading day's close of $80.03. Other companies within the Transportation industry that increased today were: FreeSeas ( FREE), up 15.3%, Newlead Holdings ( NEWL), up 11.1%, Vitran Corporation ( VTNC), up 8.3%, and Pacer International ( PACR), up 7.8%.
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Kansas City Southern, through its subsidiaries, engages in the freight rail transportation business. Kansas City Southern has a market cap of $8.7 billion and is part of the services sector. The company has a P/E ratio of 22.9, equal to the average transportation industry P/E ratio and above the S&P 500 P/E ratio of 17.7. Shares are up 16.3% year to date as of the close of trading on Thursday. Currently there are nine analysts that rate Kansas City Southern a buy, one analyst rates it a sell, and six rate it a hold.

TheStreet Ratings rates Kansas City Southern as a buy. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income, revenue growth, expanding profit margins and good cash flow from operations. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.

On the negative front, DS Torm ( TRMD), down 11.3%, Sino-Global Shipping America ( SINO), down 8.7%, Overseas Shipholding Group ( OSG), down 6.8%, and USA Truck ( USAK), down 4.9%, were all laggards within the transportation industry with Southwest Airlines ( LUV) being today's transportation industry laggard.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the transportation industry could consider iShares Dow Jones Transportation ( IYT) while those bearish on the transportation industry could consider ProShares UltraShort Industrials ( SIJ).

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