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

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.

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 1.6%. By the end of trading, Kansas City Southern rose $1.37 (1.3%) to $107.12 on light volume. Throughout the day, 637,976 shares of Kansas City Southern exchanged hands as compared to its average daily volume of 1,047,600 shares. The stock ranged in a price between $105.16-$107.64 after having opened the day at $105.82 as compared to the previous trading day's close of $105.75. Other companies within the Transportation industry that increased today were: China Metro-Rural Holdings ( CNR), up 14.3%, Frontline ( FRO), up 9.2%, Paragon Shipping ( PRGN), up 8.9% and Genco Shipping & Trading ( GNK), up 6.5%.

Kansas City Southern, through its subsidiaries, engages in the freight rail transportation business. Kansas City Southern has a market cap of $11.7 billion and is part of the services sector. Shares are up 27.6% year to date as of the close of trading on Monday. Currently there are 6 analysts that rate Kansas City Southern a buy, 1 analyst rates it a sell, and 8 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, good cash flow from operations, expanding profit margins, largely solid financial position with reasonable debt levels by most measures and solid stock price performance. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

On the negative front, StealthGas ( GASS), down 9.8%, China Eastern Airlines Corporation ( CEA), down 5.1%, FreeSeas ( FREE), down 4.9% and Newlead Holdings ( NEWL), down 4.8%.

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).

3x UPSIDE POTENTIAL: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.
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