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 up 0.1%. By the end of trading, Kansas City Southern rose $1.30 (1.4%) to $97.84 on average volume. Throughout the day, 839,036 shares of Kansas City Southern exchanged hands as compared to its average daily volume of 932,400 shares. The stock ranged in a price between $96.23-$98.37 after having opened the day at $97.03 as compared to the previous trading day's close of $96.54. Other companies within the Transportation industry that increased today were: Frontline ( FRO), up 7.3%, Paragon Shipping ( PRGN), up 6.4%, PHI Incorporated Non Voting ( PHIIK), up 4.2%, and Navios Maritime Acquisition ( NNA), up 3.7%.
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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 $10.88 billion and is part of the services sector. The company has a P/E ratio of 28.8, above the S&P 500 P/E ratio of 17.7. Shares are up 18.3% year to date as of the close of trading on Monday. Currently there are seven analysts that rate Kansas City Southern a buy, two analysts rate it a sell, and eight 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 revenue growth, expanding profit margins, solid stock price performance, largely solid financial position with reasonable debt levels by most measures and notable return on equity. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

On the negative front, FreeSeas ( FREE), down 9.6%, Newlead Holdings ( NEWL), down 4.9%, Genco Shipping & Trading ( GNK), down 4.1%, and Excel Maritime Carriers ( EXM), down 3.9%, were all laggards within the transportation industry with Expeditors International of Washington ( EXPD) 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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