At StateoftheMarkets.com, we strive to “own the best and ignore the rest” in our equity portfolios. Toward this end, each day we search our database for a “top stock” (a top rated company in terms of earnings strength as well as company and industry performance) that presents a strong technical “set up” and a good entry point.
In short, when our equity team is looking to add a stock to one of our portfolios, the “bull’s eye” stock shown below is generally their first choice.
|Company||Symbol||Industry||Stock Rating||YTD% Gain||S.T.
|Kansas City Southern||KSU||Railroads||8.4||+23.59%||$101.68|
Why We Like The Stock:
Kansas City Southern (NYSE:KSU) is our most compelling buy today due to the fact that it is a top rated stock (in terms of earnings strength and company/industry performance) with a positive technical set-up. Much like its railroad counterparts Union Pacific (NYSE:UNP), CSX Corp. (NYSE:CSX), and Norfolk Southern (NYSE:NSC), KSU has been having a stellar 2013 thus far. The stock hadn’t even had a modest pullback until early April. And after a few weeks of consolidation, it looks like it is continuing its march higher once again. While we’d rather buy at or around the 50-day moving average, current prices wouldn’t be too bad for a pristine technical chart like KSU. We’d set a closing stop below the April lows, just in case railroads stagnate here. Hopefully, KSU will keep riding higher.
We Would Be Buyers:
At the current price (~$107.90) or on a pullback to the 50-day moving average ($104.60).
Kansas City Southern is a transportation holding company with domestic and international rail operations in North America that are strategically focused on the growing north/south freight corridor connecting key commercial and industrial markets in the central United States with industrial cities in Mexico. The KCS coordinated rail network (KCSR, KCSM and Tex-Mex) comprises approximately 6,300 route miles extending from the mid west and southeast portions of the United States south into Mexico and connects with all other Class I railroads, providing shippers with an effective alternative to other railroad routes and giving direct access to Mexico and the southeast and southwest United States through alternate interchange hubs.
Stock Rating: 8.4
The Stock Rating indicates the combined score of our proprietary Earning Strength and Company Performance models. The rating scale is 0 – 10 with 10 being the highest.
Kansas City Southern – Last Three Months
Kansas City Southern – Last 12 Months
Kansas City Southern – Last Five Years
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At the time of publication the editor and affiliated companies own the following positions: KSU
Note: Positions may be bought or sold while this publication is in circulation without notice.