|Bid||113.99 x 1000|
|Ask||120.65 x 1100|
|Day's Range||0.00 - 0.00|
|52 Week Range|
|Beta (3Y Monthly)||1.16|
|PE Ratio (TTM)||20.50|
|Earnings Date||Jul 19, 2019|
|Forward Dividend & Yield||1.44 (1.22%)|
|1y Target Est||132.88|
Union Pacific's CEO, Lance Fritz, on the company's earnings beat and the impact trade tensions are having on the overall freight business.
Investors will get a pulse of the current state of the transportation industry when Kansas City Southern reports quarterly results ahead of the opening bell on Friday.
Kansas City Southern is expected to report adjusted net income of $163.6 million, or $1.61 a share, on sales of $706.5 million before the market opens Friday, based on a FactSet survey of 17 analysts. Kansas City Southern is currently trading at a price-to-forward-earnings ratio of 16.5 based on the 12-month estimates of 17 analysts surveyed by FactSet. Introducing TheStreet Courses: Financial titans Jim Cramer and Robert Powell are bringing their market savvy and investing strategies to you.
Union Pacific's (UNP) second-quarter 2019 results benefits from lower costs. The decrease in freight revenues is, however, a negative.
Union Pacific reported strong second-quarter bottom-line results. The second-quarter results beat analysts' expectations.
Union Pacific earnings topped views early Thursday after CSX earnings fell short and and Canadian Pacific Railway earnings beat on Tuesday.
Railroad stocks suffered on Wednesday, stoking fresh concerns of a slowing economy. Do these other rail operators have further to fall?
U.S. stock indexes dipped on Wednesday as weak results from CSX Corp stoked concerns that the protracted trade war between the United States and China could hurt corporate earnings. CSX shares tumbled 9.9% and were set for their biggest one-day drop since 2008 after the rail freight company posted lower-than-expected quarterly profit and cut its full-year revenue forecast. Ongoing trade tensions have contributed to a decline in truck and rail freight volumes in the first half of 2019.
Kansas City Southern (KSU) is scheduled to report its second-quarter earnings results on Friday. Analysts expect its earnings growth rate to slow.
On Wednesday, CSX (CSX) stock was trading 7% lower in the pre-market trade. The company reported dismal second-quarter results.
Analysts expect lower revenue growth to hurt Union Pacific’s bottom-line results. They expect the company to report revenues of $5.63 billion.
Declining freight volumes are likely to hurt Kansas City Southern's (KSU) second-quarter 2019 results. Amid the disappointment, the Chemical & Petroleum segment is expected to perform well.
On Tuesday, CSX (CSX) is scheduled to report its second-quarter earnings results. Analysts expect the company to report an adjusted EPS of $1.11.
Results from two major U.S. railroads next week are likely to attract more scrutiny than usual as investors look for signs of how deeply U.S. President Donald Trump's multi-front trade war is affecting freight companies and the wider economy. Among those reporting as the second quarter earnings season kicks off next week are Union Pacific Corp on Thursday and Kansas City Southern on Friday, amid worries that new U.S. import tariffs threatened by the Trump administration could also herald weakening demand for goods movers, including truckers, container companies and package carriers. The S&P 500, which crossed the 3,000 mark for the first time this week, has seesawed between record highs and selloffs in recent months on increasing U.S.-China trade acrimony and concerns about a U.S. economic slowdown.
Kansas City Southern (KSU) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
Kansas City Southern NYSE:KSUView full report here! Summary * Bearish sentiment is low Bearish sentimentShort interest | PositiveShort interest is extremely low for KSU with fewer than 1% of shares on loan. This could indicate that investors who seek to profit from falling equity prices are not currently targeting KSU. Money flowETF/Index ownership | NeutralETF activity is neutral. The net inflows of $4.55 billion over the last one-month into ETFs that hold KSU are not among the highest of the last year and have been slowing. Economic sentimentPMI by IHS Markit | NeutralAccording to the latest IHS Markit Purchasing Managers' Index (PMI) data, output in the Industrials sector is rising. The rate of growth is weak relative to the trend shown over the past year, however. Credit worthinessCredit default swapCDS data is not available for this security.Please send all inquiries related to the report to email@example.com.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.
CSX (NASDAQ:CSX) stock has been on a tear over the past few years. Shares in the railroad stock are up approximately 27% year-to-date. With strong operating margins, favorable economic conditions and a history of disciplined capital allocation, CSX stock has been a solid name to own for the past decade.Source: Shutterstock But with shares treading between $75 and $80 per share since April, will investors see a continued increase in the CSX stock price? While there are few red flags at the moment, a cooling U.S. economy may mean an end to continued earnings growth.Read on to see why CSX Corp may be sell for now:InvestorPlace - Stock Market News, Stock Advice & Trading Tips CSX Continues to Squeeze Out Earnings GrowthFor Q1 2019, revenues rose 5% from Q1 2018. With the company able to keep costs constant, operating income rose 17%. Revenue increases from transporting agricultural/food products, forest products, chemicals and coal offset declining intermodal transport revenues.Thanks to price increases, the company was able to generate revenue growth from flat volume. This indicates that while CSX (like the other Class I railroads) have been able to increase revenue per unit, it could be a sign that the company has reached the limit in terms of revenue growth.But the company has a strong track record of maintaining low operating costs. Among the Class I railroads, CSX has the lowest operating ratio (operating expenses as a percentage of revenue). * 10 Stocks That Should Be Every Young Investor's First Choice With additional layoffs expected in 2019, CSX may be able to bring down costs further. This means even with projections of low single-digit revenue growth, the company could continue to produce satisfactory earnings growth. CSX Stock Price Vulnerable to Coal DemandBased on a May 2019 investor presentation, coal makes up 19% of the company's revenues. Coal revenues for Q1 2019 were up 7% year-over-year.Continued reduction in coal demand could materially impact the CSX stock price. With the EIA's short-term energy outlook showing continued consumption declines (567 million short tons in 2020, down from 687 million in 2018), this trend does not show any signs of reversing.The counter to this is heavy demand from the domestic steel industry. International demand for American coal exports also helps to support the railroad's coal business. But any negative impact to these customer bases (downturn in economy hurting steel demand, reduced global use of coal) would affect the company's revenue. CSX Trades at Similar Valuation Levels to PeersCSX stock currently trades at a trailing price-to-earnings ratio of 19.25, and a forward P/E of 16.46. There is little variance between its valuation, and the valuation of its peers: * Canadian National Railway (NYSE:CNI): 16.13 trailing P/E, 18.04 forward P/E * Kansas City Southern (NYSE:KSU): 21.63 trailing P/E, 16.34 forward P/E * Norfolk Southern (NYSE:NSC): 20.04 trailing P/E, 16.52 forward P/E * Union Pacific (NYSE:UNP): 21.01 trailing P/E, 16.79 forward P/EHigh operating margins and a strong economy have allowed these old-line companies to achieve fairly high valuations. But with a 10-year long bull market due for a correction, is it smart to get into CSX stock today? Despite a maxed out valuation, thanks to smart capital allocation, the company could continue to drive returns to shareholders. Disciplined Capital Allocation a Strong Catalyst for CSX Stock PriceWhile CSX's valuation appears stretched, its disciplined capital allocation continues to be a strong catalyst. Based on statements from the investor presentation mentioned earlier, the company practices asset efficiency when it comes to capital expenditures.The company's focus is on identifying capital investments that generate sufficient returns, as well as right-sizing their locomotive and car fleet. This has paid off, as CSX is able to move almost all of their net income down to the free cash flow line.In 2018, the company reported a 97% conversion of net income to FCF. Management believes they can move this further, with a projected 2019 FCF conversion ratio of 99%. * 7 Retail Stocks to Buy That Are Down in 2019 This means more money for buybacks. The company bought back $5.4 billion worth of shares in 2018, and has approved a buyback program for $5 billion more in 2019.While the dividend yield is not high (1.22%), CSX has increased its dividend about 10% per year for the past decade. A low yield may reduce interest from income investors, but the share buyback strategy is a smart way to deliver value to shareholders.Share buybacks are a more tax efficient means to return capital. They also boost the company's earnings-per-share, a benefit for the CSX stock price. Bottom Line: Do Not Expect CSX Stock to OutperformCSX has seen a tremendous run in the past ten years. Shares have risen from ~$11/share in July 2009 to nearly $80 per share today. But with the U.S. economy cooling down, CSX's valuation continuing to be higher-than-normal, and conservative growth prospects, it is unlikely investors will see similar returns going forward.But for a long-term investor, the stock may be a buy. The company's strong FCF conversion ratio enable it to continue an aggressive buyback strategy. Coupled with continued dividend growth, and the stock may provide sufficient returns. But as a short-term investment? Look elsewhere.As of this writing, Thomas Niel did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Retail Stocks to Buy That Are Down in 2019 * 7 of the Best SPDR ETFs -- Besides SPY and GLD * 5 Dividend Stocks to Buy From Across the Globe The post CSX Stock Is Finally Due for A Correction After Its Massive Climb appeared first on InvestorPlace.
Rail union workers are at odds with other members of the freight rail industry over how cross-border rail operations are run at Laredo, Texas. The Brotherhood of Locomotive Engineers and Trainmen (BLET) wants any post-North American Free Trade Agreement (NAFTA) to include a provision stating that only U.S. citizens should operate freight trains originating from Mexico. BLET President Dennis R. Pierce said the union has approached the White House and U.S. Trade Representative Robert E. Lighthizer to include such a provision in the next free trade agreement between the U.S., Canada and Mexico, but that the union hasn't received a response.
This article is written for those who want to get better at using price to earnings ratios (P/E ratios). We'll apply a...
Kansas City Southern’s (KSU) rail traffic fell 1.6% in Week 24. The company hauled 45,481 units during the week—compared to 46,204 units in Week 24 of 2018.
Kansas City Southern will release its second quarter 2019 financial results on Friday, July 19, 2019, before the opening of trading on the New York Stock Exchange.