|Bid||115.02 x 900|
|Ask||116.71 x 800|
|Day's Range||115.42 - 117.21|
|52 Week Range||90.55 - 125.92|
|Beta (3Y Monthly)||1.18|
|PE Ratio (TTM)||20.31|
|Earnings Date||Jul 18, 2019 - Jul 22, 2019|
|Forward Dividend & Yield||1.44 (1.27%)|
|1y Target Est||133.24|
Kansas City Southern NYSE:KSUView full report here! Summary * Bearish sentiment is low * Economic output in this company's sector is contracting Bearish sentimentShort interest | PositiveShort interest is low for KSU with fewer than 5% of shares on loan. The last change in the short interest score occurred more than 1 month ago and implies that there has been little change in sentiment among investors who seek to profit from falling equity prices. Money flowETF/Index ownership | NeutralETF activity is neutral. ETFs that hold KSU had net inflows of $4.68 billion over the last one-month. While these are not among the highest inflows of the last year, the rate of inflow is increasing. Economic sentimentPMI by IHS Markit | NegativeAccording to the latest IHS Markit Purchasing Managersâ€™ Index (PMI) data, output in the Industrialsis falling. The rate of decline is very significant relative to the trend shown over the past year, and is accelerating. The rate of contraction may ease in the coming months, however. Credit worthinessCredit default swapCDS data is not available for this security.Please send all inquiries related to the report to firstname.lastname@example.org.Charts and report PDFs will only be available for 30 days after publishing.This document has been produced for information purposes only and is not to be relied upon or as construed as investment advice. To the fullest extent permitted by law, IHS Markit disclaims any responsibility or liability, whether in contract, tort (including, without limitation, negligence), equity or otherwise, for any loss or damage arising from any reliance on or the use of this material in any way. Please view the full legal disclaimer and methodology information on pages 2-3 of the full report.
Union Pacific's (UNP) shareholder-friendly measures are encouraging. Additionally, an improvement in the operating ratio highlights the company's operational efficiency.
The transition to e-commerce and anticipated advances in automated trucking are forcing the freight railroads to adapt to supply chains that require railroads to be more responsive and nimble. Examples of this tactic include Canadian National's (NYSE: CNI) promotion of Michael Foster to executive vice president and chief information technology officer and CSX's (NYSE: CSX) appointment of Farrukh A. Bezar as senior vice president and chief strategy officer. Other examples include Kansas City Southern's (NYSE: KSU) September 2018 promotions of Brian Hancock to executive vice president and chief innovation officer and Michael Naatz to executive vice president and chief marketing officer.
Downtrend in US Rail Traffic Persisted for 19th Consecutive Week(Continued from Prior Part)Kansas City SouthernKansas City Southern (KSU) reported a 3.1% fall in its overall rail traffic in Week 22. The company hauled 42,456 units during the week
The Dow Jones Transportation Average took a 91-point, or 0.9% dive in morning trading Thursday, with 18 of 20 components trading lower, pushed down by concerns over economic growth and prolonged trade disputes. The selloff comes despite the Dow Jones Industrial Average's 53-point, or 0.2% gain, with 18 of 30 components trading higher. The Dow transports' biggest loser was railroad operator Kansas City Southern's stock , which fell 2.0%. Bank of America Merrill Lynch analyst Ken Hoexter said in a recent note to clients that Kansas City Southern is the most exposed to escalating tariffs on imports from Mexico, with FactSet estimating just under half of the company's revenue coming from its Mexico business. Among other Hoexter said have "material" Mexico revenue, shares of Union Pacific Corp. shed 1.2% and Werner Enterprises Inc. slumped 2.4%.
As if U.S.-China tensions weren't worrying enough, there is now a new downside risk rattling the markets: Mexico tariffs.The Trump administration recently threatened across-the-board tariffs on imports from Mexico. That followed a tweet from President Trump on May 30 stating "On June 10th, the United States will impose a 5% Tariff on all goods coming into our Country from Mexico." This figure would steadily increase to 25% by October unless Mexico takes more forceful action to prevent migrants from illegally entering the U.S.Goldman Sachs says investors should prepare for the worst. "At least the first 5% tariff on imports from Mexico planned for June 10 will be implemented," Ben Snider, an equity strategist at Goldman Sachs, wrote in a recent note. "Escalation of the trade war poses a risk to both corporate profit margins and the health of the US consumer, who will likely absorb the majority of the tariffs via higher prices.".Deutsche Bank senior economist Matthew Luzzetti wrote in a June 4 report, "If implemented, these tariffs would be highly disruptive to the US economy given the scope ... of the trading relationship between the two economies." He points out that American imports from Mexico were about $350 billion in 2018, or 1.7% of GDP. Which stocks could suffer most from this new American trade-war front? Here are five stocks that TipRanks data shows are most vulnerable to the proposed Mexico tariffs. Exposure to Mexico isn't necessarily a reason for long-term buy-and-holders to sell. But it's important to know that volatility might be ahead ... and in some cases, investors might even want to consider buying on the dip to benefit from an eventual resolution. SEE ALSO: 13 Blue-Chip Stocks to Buy on the Next Dip
A new frontier for US trade tensions has now appeared. Mexico. On May 30 President Trump announced plans to implement tariffs on Mexican imports, starting June 10\. In a statement the White House said that duties would rise to 25% if Mexico does not take action to “reduce or eliminate the number of illegal aliens” entering the US. Following the announcement, Goldman Sachs conducted a screen of all stocks in the Russell 1000 to pinpoint those most sensitive to the new tax. “At least the first 5% tariff on imports from Mexico planned for June 10 will be implemented,” Ben Snider, Goldman Sachs’ equity strategist said. “The combination of proposed tariffs on China and Mexico imports would result in roughly 80% of some U.S. imported products being subjected to tariffs, including toys, cell phones, and other consumer electronics.”“Escalation of the trade war poses a risk to both corporate profit margins and the health of the US consumer, who will likely absorb the majority of the tariffs via higher prices,” Snider continued. Here are three stocks with the most exposure to the proposed Mexican tariffs, according to the firm: Skyworks Solutions (SWKS)This semiconductor stock has 39% of its reported assets in Mexico. And alongside significant Mexico exposure, the company has another problem on its hands. Skyworks supplies China’s Huawei with RF chips, which account for ~10% of est. FY19 sales. That’s problematic because on March 15, the Trump administration announced its intention to ban the Chinese telecoms giant from acquiring US components and technology without government approval.As a result Craig Hallum’s Anthony Stoss lowered his price target from $105 to $85 (27% upside potential). Meanwhile Needham’s Rajvindra Gill lowered estimates but reiterated his long-term bullish view on the stock: “Despite near-term pressure, we remain bullish on SWKS, which trades at a multi-year low (10.5x P/E), a ~15% discount to peak in '15 of 12.4x. Much of Huawei risk is priced into the shares, as we see it, which declined 11% in past week and 23% in past month.”He continued: “We believe SWKS sales growth will resume in 2020 due to higher mix of broad markets, which include 5G infrastructure and IoT.” The analyst has a $95 price target on shares (42% upside potential). Kansas City Southern (KSU)With 38% of its assets in Mexico, this railroad company is bound to feel the pain once the tariffs are implemented. As well as an operating arm in Mexico, Kansas City Southern also serves 90% of auto assembly plants in Mexico and has four automotive distribution facilities and access to three major Mexico ports on the Pacific and Gulf Coasts.Indeed, shares have plunged 7% over the last five days. And we can see here how news sentiment for the stock currently registers as Strong Negative: View KSU news breakdown over the last weekThe company has already released a statement concerning the tariffs, writing that it "is aware of the President's tweet yesterday but is not able to estimate what impact such action might have on the flow of its cross-border freight. KSU's cross-border traffic represents approximately 40% of our total traffic. Sixty percent of our cross-border traffic originates north of the border and is exported from the U.S. to Mexico, including grain exports originating in the Midwest states forming the US Corn Belt.”"KSU hopes that such action will not be necessary and that efforts of the U.S. and Mexican governments to stem the flow of immigrants through Mexico to the U.S. border are not tied to the vital commerce that exists between the two countries and Canada.”Meanwhile the American Association of Railroads (AAR) said its focus is on Congress ratifying the USMCA trade agreement between the U.S., Canada and Mexico. "Any action that impedes [USMCA's] passage is concerning, such as tariffs that create barriers to commerce. We are watching what our customers say and do, particularly the auto and agricultural industries that move a lot of goods to and from Mexico," AAR said. Sensata Technologies (ST)Sensata Technologies, a company which focuses on electrical components, has 26% of its assets in Mexico. Shares have only marginally pulled back over the last week- but the stock is still down a worrying 15% over the last three months. Interestingly however, JP Morgan downgraded Sensata last month. The firm explained that a further upside re-rate is unlikely in an environment of moderating auto production in 2019. “We are moving to the sidelines with a Neutral rating to wait for improvement in industry fundamentals” concluded JP Morgan’s Samik Chatterjee while taking the price target from $60 to $57. Find the latest ratings from the Street's best-performing analysts here.
Every investor in Kansas City Southern (NYSE:KSU) should be aware of the most powerful shareholder groups. Insiders...
Kansas City Southern Fell ~5% Due to Trump’s Mexico Tariff HikeKansas City SouthernKansas City Southern (KSU) shares fell ~5% on May 31. President Trump announced tariffs on all of the imported goods from Mexico. On May 30, President Trump
** S&P 500 drops 2.6%, extends losing streak to 4 weeks. SPX sheds 6.6% in May as U.S.-China trade war intensifies and President Trump opens new front with Mexico ** Indeed, the SPX appeared heavy handed, ...
The railroad industry is "concerned" about a possible disruption of the North American supply chain should the U.S. impose tariffs on imports from Mexico. Railroad companies with more exposure to trade with Mexico, such as Kansas City Southern (NYSE: KSU) and Union Pacific (NYSE: UNP), saw their stocks dip upon the news that President Donald Trump is considering slapping tariffs on Mexican imports as a way to push Mexico to take steps to stop the flow of illegal immigrants into the U.S. President Trump is proposing to impose a 5 percent tariff on Mexican imports starting on June 10, with that percentage increasing up to 25 percent on October 1.
US Rail Traffic Downtrend Persisted for the 18th Straight Week(Continued from Prior Part)KSU’s rail traffic fellKansas City Southern (KSU) reported a 2.3% fall in its overall rail traffic in Week 21. The company hauled 44,129 units during the week
On May 30, 2019, President Trump threatened to implement increasing rounds of tariffs on all Mexican imports beginning with a 5 percent tariff on June 10 unless Mexico (and U.S. lawmakers) take immediate steps to stop the flow of illegal immigration into the United States. Similar remarks came from the White House in April, but with a one-year time frame to take measures to stem illegal immigration into the U.S. Eroding freight fundamentals have been attributed to general economic malaise, the other trade war (China) and tough year-over-year comparisons from a record 2018 freight demand environment.
CNBC screened the components of the S&P 500 by their respective revenue exposure to Mexico. Kansas City Southern, Union Pacific, PepsiCo and Nucor were among those with the highest proportion of sales in the country. President Donald Trump said Thursday night that he will impose a 5% tariff on all Mexican imports starting June 10 if Mexico doesn't take steps to secure its border.
U.S. equities slumped as Trump opened a new front in his trade wars, threatening to place escalating tariffs on Mexico and jeopardizing a new North American trade agreement. Mexico is by far the largest source of U.S. auto imports and tariffs on goods from there would increase costs for many major manufacturers. “These measures aren’t beneficial for Mexicans or Americans,” Mexican President Andres Manuel Lopez Obrador said in a press conference Friday.
After a two-day hearing highlighting impacts of railroad fees, rail customers expect regulatory action.
Rise in overall volumes, improvement in operating ratio and higher revenues across majority of Kansas City Southern's (KSU) segments are aiding the company.
US Rail Traffic Fell in Week 20 Due to Intermodal Weakness(Continued from Prior Part)Kansas City SouthernKansas City Southern (KSU) reported a 1.8% YoY (year-over-year) improvement in its overall rail traffic in Week 20. The company hauled 44,959
US Rail Traffic Fell in Week 20 Due to Intermodal WeaknessRail traffic declinedUS railroad companies’ rail traffic volumes fell for the 17th consecutive week. On May 22, the Association of American Railroads reported that the overall rail traffic
Railroad Stocks: Analyzing the Earnings Performance in Q1(Continued from Prior Part)Analysts’ opinionThe analysts polled by Reuters have provided a bullish recommendation for most of the Class I railroad companies. However, analysts’ target
Kansas City Southern Executive Vice President and Chief Operating Officer, Jeffrey M. Songer, will address Deutsche Bank’s 10th Annual Global Industrials & Materials Summit at 9:40 a.m.
In the first day of the two-day Surface Transportation Board hearing, corporate giants from a range of industries accused the railroads of making rule-based fees unavoidable and unbearable.