KSU stock: buy or sell?

KSU stock price: $145.25 7.26% At close on October 18th, 2019

Updated on:
October 18th, 2019

4

Shares of Kansas City Southern ended on October 18th at $145.25 after reaching a new all time high ($145.82) and boosted an extraordinary 7.26%. Counting Oct 18th, it's been 4 green sessions in a row, soaring $13.25 or 9.93%.

Kansas City Southern, through its subsidiaries, provides domestic and international rail transportation services in North America.

Should I buy KSU stock?

Even if you are a experienced or a novel trader, best trading results come from using an investing strategy that never leaves to random or subjective opinions when is the best moment to buy or sell stocks. Trading strategies are meant for helping you in the decision process of what stocks to choose and when is the best moment to buy them. At Stocks2.com, we use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best.

These 2 buy setups work for Kansas City Southern stock right now:

Buy setupElegible
New all-time highYes
New 52 week highYes
Price crossing up 200d MANo
100d MA crossing up 200d MANo

Is Kansas City Southern stock a buy?

Banks and financial institutions publish 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

Kansas City Southern boosted 7.26% on October 18th and touched a new all time high at $145.82.

After marking all time highs on Oct/18, Kansas City Southern boosted 7.26% on October 18th to $145.25. Since price and SMA100d lines crossed up on August, KSU climbed $26.08 (21.88%).

KSU stock chart (daily)

Weekly outlook

Kansas City Southern closed this week at $145.25 after reaching a new all time high ($145.82) and climbed an amazing 8.80%.

Price pattern shows an uptrend with two rising tops and bottoms, and now finally trading above the $134.70 resistance. Late April, SMA20w and SMA40w crossed up triggering a rise of 16.85%. Since mid February when KSU stock price broke up the SMA40w line, it gained $43.95 (43.39%).

KSU stock chart (weekly)

KSU stock price history

KSU IPO was on March 17th, 1980 at $0.00 per share1. Since then, KSU stock surged a inf%, with an average of inf% per year. If you had invested $1,000 in KSU stock in 1980, it would worth $inf today.

1: Adjusted price after possible price splits or reverse-splits.

KSU stock historical price chart

KSU stock reached all-time highs on October 18th with a price of $145.82.

KSU stock price target is $129.20

How much a stock will be priced tomorrow or next week is quite unpredictable 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 targets for KSU 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 target 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 . As soon as we get its actual EPS from the earnings report, we will extend this review.
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 revenues report draw a good growth of 5.08% to $2,714.00 M dollars. On the other hand, its income margin (compared to sales) collapsed to 23.12%, that is $627.40 million.

Kansas City Southern fiscal year ends 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 income $585.70 M dollars. When comparing this TTM figures with the last reported annuality, we can esteem Kansas City Southern business evolution since December 2018: Annual sales up to March, compared to lastest yearly report, grew a tiny 1.33%. Instead, profit margin (net income/sales) depreciated at 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 reported $674.80 million in sales for 2019-Q1, a -2.77% decline compared to previous quarter. Reported quarter income marked $102.80 million with a profit margin of 15.23%. Profit margin eased a -7.98% compared to previous quarter when profit margin was 23.21%. When comparing revenues to same quarter last year, Kansas City Southern sales marked a beatiful gain and soared a 5.67%. Looking back to recent quarterly results, Kansas City Southern posted 2 negative 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 always worth to check 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.

The following table compares ownership indicators for other stocks related to Kansas City Southern:

KSUCNICPCSXGWR
Market cap$14.5 B$62.9 B$30.0 B$54.8 B$6.3 B
Total shares99.9 M718.1 M138.6 M798.2 M56.6 M
Float shares99.3 M615.5 M128.0 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

Friday, October 18th, 2019
Open$141.00
Close$145.25
Day range$140.36 - $145.82
Previous close$135.42
Session gain7.26%
Average true range$3.38
50d mov avg$128.06
100d mov avg$123.82
200d mov avg$118.25
Daily pattern
Weekly pattern lb02c

Kansas City Southern performance

To better understand Kansas City Southern performance you must compare its gains with other related stocks in same sector or industry. In the following table, we compare Kansas City Southern performance to Canadian National Railway, Canadian Pacific Railway, CSX, Genesee & Wyoming, Norfolk Souther and Union Pacific:
Stock3m6m12m
KSU18.00%16.85%38.64%
CNICanadian National...-4.02%-5.66%5.39%
CPCanadian Pacific ...-8.76%0.61%9.99%
CSX -1.97%-12.43%2.42%
GWRGenesee & Wyoming1.37%27.67%36.92%
NSCNorfolk Souther-6.33%-7.53%13.14%
UNPUnion Pacific-7.31%-7.53%11.00%

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 selected 6 companies as Kansas City Southern competitors as they are in the same industry or have similar market objectives.

Latest KSU stock news