KSU stock: buy or sell?
August 19th, 2019
Kansas City Southern, through its subsidiaries, provides domestic and international rail transportation services in North America.
Should I buy KSU stock?You can't be a successful trader if you don't follow a methodolgy or system that assist you in choosing companies and the correct market timing. Having a trading plan helps to make decisions easier, quicker and with less hesitations. At Stocks2.com, we use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best.
None of our preferred buy setups matches with Kansas City Southern stock situation right now, hence this is not a suitable entry point.
|New all-time high||No|
|New 52 week high||No|
|Price crossing up 200d MA||No|
|100d MA crossing up 200d MA||No|
Is Kansas City Southern stock a buy?
Financial institutions and banks post stock ratings everyday.At Stocks2.com, we collected 15 ratings published for KSU stock in the last 30 days. The general sentiment of these ratings is bullish for KSU stock, with 8 positive ratings.
|Date||Analyst / Broker||Previous rating||Current rating|
|2019-7-22||Morgan Stanley||n/a||Equal Weight|
|2019-7-22||JPMorgan Chase & Co.||n/a||Neutral|
|2019-7-22||Credit Suisse Group||n/a||Outperform|
|2019-4-4||Barclays||Equal Weight||Equal Weight|
|2019-3-20||Bank of America||Buy||Buy|
|2019-1-7||Morgan Stanley||Equal Weight||Equal Weight|
|2019-1-7||Credit Suisse Group||n/a||Outperform|
KSU stock analysis
After breaking up the SMA line of 100d yesterday, Kansas City Southern shares closed at $122.08, escalated a 1.67%.
After crossing up the SMA line of 100 days yesterday, Kansas City Southern shares closed today at $122.08. Since May when SMA100d and SMA200d crossed up, KSU price slipped $-1.18 per share (-0.96%). On July/23, KSU hit new all time highs, pushing higher previous ATH of $125.87 recorded on Jul 22nd. New ATHs are usual entry points for many trading setups as there aren't higher resistences.
Kansas City Southern shares grew 1.67% this week, ending at $122.08.
If you observe the weekly chart, price is in a simple uptrend, tested $115.12 level and now climbing back aiming its last top at $126.47. Not so far away is the last price record Kansas City Southern marked late July. Since SMA20w and SMA40w crossed up late April, KSU price slid a -2.06%. By mid February KSU price bounced up over the SMA of 40 weeks that acted as support stopping new slides.
KSU stock price history
KSU stock went public on March 17th, 1980 with a price of $0.381. Since then, KSU stock surged a 32,026.30%, with an average of 821.20% per year. If you had invested right after KSU's IPO a $1,000 in KSU stock in 1980, it would worth $320,263.00 today.
1: Adjusted price after possible price splits or reverse-splits.
KSU stock historical price chart
KSU stock reached all-time highs on July 23rd with a price of $126.47.
KSU stock price target is $129.20Nobody can reliably foresee how stock prices may evolve in the future. However, many stock price predictions are published every day by banks, financial institutions and independent analysts. The accuracy of these stock price predictions is not very high, and you should not blindly believe and make decisions only based on what this ratings or price target predictions say. We detected 13 price forecasts for Kansas City Southern stock released in the last month:
|Date||Analyst / Broker||Action||Previous target||Current target||Diff|
|2019-7-8||Morgan Stanley||Set Price Target||n/a||$111.00||-|
|2019-7-22||Raymond James||Raises Target||$140.00||$141.00||0.7%|
|2019-7-22||Morgan Stanley||Raises Target||$111.00||$121.00||9%|
|2019-7-22||Loop Capital||Raises Target||n/a||$144.00||-|
|2019-7-22||JPMorgan Chase & Co.||Raises Target||$130.00||$136.00||4.6%|
|2019-7-22||Credit Suisse Group||Reiterates||$134.00||$140.00||4.5%|
|2019-3-20||Bank of America||Reiterates||$122.00||$127.00||4.1%|
|2019-1-7||Morgan Stanley||Raises Target||$112.00||$113.00||0.9%|
|2019-1-7||Credit Suisse Group||Reiterates||$126.00||$116.00||-7.9%|
Financials and fundamental analysis
Earnings date and Earnings per ShareAfter publishing its last earnings report on April, Kansas City Southern remained stable a tight -0.29%. Unfortunately, reported EPS is not yet available in our database.
|Quarter||Reporting date||Estimated EPS||Actual EPS||Surprise|
Annual financial resultsCompared to 2017, last anual sales report draw a good increase of 5.08% to $2,714.00 M USD. In contrast, its income margin (compared to revenues) collapsed to 23.12%, that is $627.40 million. Kansas City Southern presents anual results in December, and to evaluate its evolution since then, we estimate annual sales and income figures by adding results from the last 4 quarters. This is called TTM (or Twelve Trailing Months). So, Kansas City Southern TTM sales up to March 2019 were $2,750.20 and earnings $585.70 million dollars. If we compare this TTM figures with the last reported annuality, we can esteem Kansas City Southern business evolution since December 2018: Annual revenues up to March, compared to lastest yearly report, appreciated a slightly fine 1.33%. Regarding profit margin, Kansas City Southern depreciated -1.82% to 23.12%
|2013||$2,370 M||-||$351 M14.8%||-|
|2014||$2,577 M||8.74%||$503 M19.5%||43.03%|
|2015||$2,419 M||-6.14%||$484 M20.0%||-3.80%|
|2016||$2,334 M||-3.50%||$478 M20.5%||-1.12%|
|2017||$2,583 M||10.65%||$962 M37.2%||101.21%|
|2018||$2,714 M||5.08%||$627 M23.1%||-34.78%|
|TTM||$2,750 M||1.33%||$586 M21.3%||-6.65%|
Quarterly financial resultsKansas City Southern posted $674.80 million in sales for 2019-Q1, a -2.77% decline compared to previous quarter. Reported quarter income marked $102.80 M with a profit margin of 15.23%. Profit margin slipped a -7.98% compared to previous quarter when profit margin was 23.21%. When comparing sales to same quarter last year, Kansas City Southern sales marked a decent gain and rose a 5.67%. Looking back to recent quarterly results, Kansas City Southern posted 2 positive quarters in a row.
|2017-Q2||$669 M||-||$134 M20.1%||-|
|2017-Q3||$668 M||-0.22%||$129 M19.4%||-3.79%|
|2017-Q4||$660 M||-1.09%||$552 M83.5%||326.68%|
|2018-Q1||$639 M||-3.30%||$145 M22.6%||-73.81%|
|2018-Q2||$682 M||6.86%||$148 M21.7%||2.56%|
|2018-Q3||$699 M||2.43%||$174 M24.8%||17.14%|
|2018-Q4||$694 M||-0.72%||$161 M23.2%||-7.20%|
|2019-Q1||$675 M||-2.77%||$103 M15.2%||-36.19%|
Kansas City Southern ownershipWhen you are planning to buy a company, it's worth to review its ownership structure.
Kansas City Southern shares owned by insiders (that is, founders, CEO, CTO, main executives or other management staff) currently counts a 0.51% of all shares.
Bearish positions for KSU stock account 0.00%, no big difference from last month.
For a better understanding, the following table shows ownership data compared to other related stocks:
|Market cap||$12.3 B||$67.8 B||$34.8 B||$52.8 B||$6.2 B|
|Total shares||100.6 M||727.3 M||144.9 M||809.2 M||56.5 M|
|Float shares||99.3 M||616.5 M||128.7 M||796.9 M||55.5 M|
|- Institutional holdings (%)||85.4%||0.0%||75.4%||78.7%||98.0%|
|- Insider holdings (%)||0.5%||3.0%||0.0%||0.2%||1.9%|
|Shares in short selling||0.0%||0.0%||0.0%||0.0%||0.0%|
|Monday, August 19th, 2019|
|Day range||$121.54 - $122.73|
|Average true range||$2.87|
|50d mov avg||$120.29|
|100d mov avg||$119.94|
|200d mov avg||$111.64|
Kansas City Southern performanceStocks performance is always measured in comparision to the market or competitors and related stocks in the same industry. We compared Kansas City Southern against Canadian National Railway, Canadian Pacific Railway, CSX, Genesee & Wyoming, Norfolk Souther and Union Pacific in the following table:
|CPCanadian Pacific ...||7.97%||16.37%||19.42%|
|GWRGenesee & Wyoming||16.85%||31.42%||25.30%|
Kansas City Southern competitorsOne check before investing in any stock is to review a list of its competitors, in this case for Kansas City Southern. We picked 6 companies as Kansas City Southern competitors as they are in the same industry or have similar market objectives.
- Canadian National Railway (CNI)
- Canadian Pacific Railway (CP)
- CSX (CSX)
- Genesee & Wyoming (GWR)
- Norfolk Souther (NSC)
- Union Pacific (UNP)
Latest KSU stock news
- InvestorPlaceKansas City Southern Earnings: KSU Stock Surges on Q2 ResultsJuly 19, 2019
- Seeking AlphaKansas City Southern: Waiting For The BreakoutJuly 23, 2018
- InvestorPlace3 Big Stock Charts for Friday: Kansas City Southern, Nordstrom and TJX CompaniesJuly 13, 2018
- InvestorPlace3 Big Stock Charts for Tuesday: J M Smucker Co, PepsiCo, Inc. and Kansas City SouthernJuly 3, 2018