KSU stock: buy or sell?

KSU stock price: $122.08 1.67% At close on August 19th, 2019

Updated on:
August 19th, 2019

4

After crossing up the SMA line of 100d yesterday, Kansas City Southern closed at $122.08, escalated a 1.67%.

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.

Buy setupElegible
New all-time highNo
New 52 week highNo
Price crossing up 200d MANo
100d MA crossing up 200d MANo
This doesn't mean KSU will slide in coming sessions, or it will not rise higher. Simply, it doesn't match our recommended trading systems.

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.
Is KSU a good stock to buy?
DateAnalyst / BrokerPrevious ratingCurrent rating
2019-7-8Morgan Stanleyn/aHold
2019-7-22Raymond Jamesn/aStrong-Buy
2019-7-22Morgan Stanleyn/aEqual Weight
2019-7-22Loop Capitaln/aBuy
2019-7-22JPMorgan Chase & Co.n/aNeutral
2019-7-22Credit Suisse Groupn/aOutperform
2019-7-17Cascend SecuritiesBuyHold
2019-4-4CitigroupBuyBuy
2019-4-4BarclaysEqual WeightEqual Weight
2019-4-18Raymond JamesStrong-BuyBuy
2019-3-20Bank of AmericaBuyBuy
2019-1-8Atlantic Securitiesn/aOverweight
2019-1-7Morgan StanleyEqual WeightEqual Weight
2019-1-7Credit Suisse Groupn/aOutperform
2019-1-22Stifel Nicolausn/aBuy

KSU stock analysis

Daily outlook

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.

KSU stock chart (daily)

Weekly outlook

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 chart (weekly)

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 $129.20

Nobody 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:
KSU stock price predictions
DateAnalyst / BrokerActionPrevious targetCurrent targetDiff
2019-7-8Morgan StanleySet Price Targetn/a$111.00-
2019-7-22Raymond JamesRaises Target$140.00$141.000.7%
2019-7-22Morgan StanleyRaises Target$111.00$121.009%
2019-7-22Loop CapitalRaises Targetn/a$144.00-
2019-7-22JPMorgan Chase & Co.Raises Target$130.00$136.004.6%
2019-7-22Credit Suisse GroupReiterates$134.00$140.004.5%
2019-4-4CitigroupRaises Target$130.00$135.003.8%
2019-4-4BarclaysLowers Target$130.00$128.00-1.5%
2019-4-18Raymond JamesReiterates$135.00$140.003.7%
2019-3-20Bank of AmericaReiterates$122.00$127.004.1%
2019-1-7Morgan StanleyRaises Target$112.00$113.000.9%
2019-1-7Credit Suisse GroupReiterates$126.00$116.00-7.9%
2019-1-22Stifel NicolausReiterates$120.00$128.006.7%
(in average)$126.40$129.202.0%
Moving in a range from $144.00 and $111.00, the price forecast for KSU stock is $129.20.

Financials and fundamental analysis

Earnings date and Earnings per Share

After 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.
KSU earnings date and EPS evolution
QuarterReporting dateEstimated EPSActual EPSSurprise
2017-Q2-n/a1.27n/a
2017-Q32017-10-201.311.353.1%
2017-Q42018-01-191.371.380.7%
2018-Q12018-04-201.351.3-3.7%
2018-Q22018-07-201.521.541.3%
2018-Q32018-10-191.581.57-0.6%
2018-Q42019-01-181.561.560.0%
2019-Q12019-04-181.48n/an/a
2019-Q2-n/an/an/a
2019-Q3-n/an/an/a

Annual financial results

Compared 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%

KSU annual Sales and Income evolution
YearSalesYoYIncome/(margin)YoY
2013$2,370 M-$351 M14.8%-
2014$2,577 M8.74%$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 M10.65%$962 M37.2%101.21%
2018$2,714 M5.08%$627 M23.1%-34.78%
TTM $2,750 M1.33%$586 M21.3%-6.65%

Quarterly financial results

Kansas 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.
KSU quarterly Sales and Income evolution
QuarterSales1QoQ2Income1/(margin)QoQ2
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 M6.86%$148 M21.7%2.56%
2018-Q3$699 M2.43%$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 ownership

When 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:

KSUCNICPCSXGWR
Market cap$12.3 B$67.8 B$34.8 B$52.8 B$6.2 B
Total shares100.6 M727.3 M144.9 M809.2 M56.5 M
Float shares99.3 M616.5 M128.7 M796.9 M55.5 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 selling0.0%0.0%0.0%0.0%0.0%

KSU summary

Monday, August 19th, 2019
Open$121.69
Close$122.08
Day range$121.54 - $122.73
Previous close$120.07
Session gain1.67%
Average true range$2.87
50d mov avg$120.29
100d mov avg$119.94
200d mov avg$111.64
Daily pattern
Weekly pattern lb01a

Kansas City Southern performance

Stocks 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:
Stock3m6m12m
KSU1.33%10.33%8.78%
CNICanadian National...2.44%9.97%8.44%
CPCanadian Pacific ...7.97%16.37%19.42%
CSX -12.55%-10.35%-11.44%
GWRGenesee & Wyoming16.85%31.42%25.30%
NSCNorfolk Souther-12.05%-3.98%1.66%
UNPUnion Pacific-1.52%0.22%14.73%

Kansas City Southern competitors

One 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.

Latest KSU stock news