Kansas City Southern: This Top railroad stock will see a very solid 2-H this year with the improving economy.
Kansas City Southern Inc. (NYSE:KSU) is a Class 1 North American railroad, with 6,000-track mile network, serving 10 states in the central and south-central US, and Mexico.
With a network spanning across the US-Mexico border through Laredo, Texas, the company provides a direct connection between the United States and the industrial centers of Mexico. The company’s Mexican operating subsidiary, Kansas Southern de Mexico, is 1 of the 2 largest primary Mexican rail carriers.
The company is expected to generate $500-M in free cash flow for Y 2020, and analysts expect strong operating leverage as volumes start to rebound with an improving economy.
The stock finished Tuesday at 152.85, +4.92 Vs a 52 wk trading range of 92.86 – 178.59. Shareholders receive a 1.11% dividend.
We have set a 200 price objective. The consensus target price is 156.72
There is Strong Support at 142.92 and light overhead resistance through 177.64.
My technical outlook is Very Bullish in here, as an Northside breakout is setting up.
Have a healthy day, Keep the Faith!