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Bull’s Eye Report: Kansas City Southern (KSU)

Buy KSU at current levels


At, 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.
Stop Loss
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).

Company Profile:

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.

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