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 0.8%. By the end of trading, Kansas City Southern rose $2.45 (2.2%) to $113.82 on average volume. Throughout the day, 1,095,134 shares of Kansas City Southern exchanged hands as compared to its average daily volume of 1,202,300 shares. The stock ranged in a price between $112.62-$114.66 after having opened the day at $112.93 as compared to the previous trading day's close of $111.37. Other companies within the Transportation industry that increased today were: Newlead Holdings ( NEWL), up 11.5%, Universal Truckload Services ( UACL), up 11.3%, Navios Maritime Holdings ( NM), up 7.0% and Arkansas Best Corporation ( ABFS), up 6.3%.
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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 $12.3 billion and is part of the services sector. The company has a P/E ratio of 30.2, above the S&P 500 P/E ratio of 17.7. Shares are up 33.4% year to date as of the close of trading on Friday. Currently there are 6 analysts that rate Kansas City Southern a buy, 3 analysts rate it a sell, and 7 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 solid stock price performance. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

On the negative front, Eagle Bulk Shipping ( EGLE), down 4.5%, Euroseas ( ESEA), down 4.4%, Alaska Air Group ( ALK), down 4.2% and Knightsbridge Tankers ( VLCCF), down 4.1% , were all laggards within the transportation industry with FedEx Corporation ( FDX) 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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