Technical Research on Union Pacific and Kansas City Southern: Railroad Stocks Offer Good Returns
by PR Newswire
LONDON, February 15, 2013 /PRNewswire/ --
Railroad stock closely mimic general economic trend. This is especially true in the case of railroad companies specializing in the transportation of industrial goods. Kansas City Southern (NYSE: KSU) stock hit multiple 52 week highs this year and reported good quarterly results, thanks to the increased demand. Similarly, Union Pacific Corporation (NYSE: UNP) also provided robust Q4 results. The industry faces the change in its dynamics as it witnesses decline in coal shipment. At the very same time, shipment volume and value for oil and gas is increasing, providing a cushion to the industry. StockCall has posted free technical research reports on Union Pacific and Kansas CitySouthern, and these can be accessed by signing up at http://www.stockcall.com/analysis
Kansas City Southern Hits 5- Week High
Kansas City Southern derives half of its total revenue from chemicals and industrial products transportation. Improvement in general economy and better demand for goods bodes well for the fortunes of the company. The company also has 7 percent revenue growth rate, which is among the best in the industry. Kansas City Southern stock appreciated 17 percent on a YTD basis and is expected to keep up the momentum. Kansas City Southern technical report can be accessed for free by signing up at http://www.StockCall.com/KSU021513.pdf
Kansas City Southern mainly operates in states like Texas and Alabama. Its fourth quarter revenue stood at $568 million, up 7 percent, while its operating income grew 15 percent to touch $174 million figure. Its adjusted net earnings were at 92 cents per share, beating consensus estimate of 82 cents per share. The company is expected to show strong growth in the future as well.
Kansas City Southern has witnessed a change in its revenue mix. Its coal revenue is on the decline, but the negative impact is neutralized by the increase in oil revenue. The company now also focuses on forest products and intermodal shipment. Kansas City Southern is expected to report its first quarter revenue at $587.3 million while its EPS is expected to be at 89 cents per share. On the back of improved revenue and profitability, Kansas City Southern stock may deliver more value to its holders.
Union Pacific Reports Results
Union Pacific Corporation announced healthy fourth quarter results. Its revenue for the quarter stood at $5.25 billion while its EPS was reported at $2.19 per share. The company also improved gross and net margins. For the fiscal first quarter, the company expects to earn $5.25 billion in revenue. Its EPS is likely to decline marginally to $1.99 per share. The stock is up 8 percent on a YTD basis. Based on its optimistic guidance, the stock is expected to make move further up. Coupled with 2.03 percent dividend yield, Union Pacific Corporation stock provides a good investment avenue. Download the free report on Union Pacific Corporation upon registration at
Union Pacific Corporation faces the industry-wide problem of decline coal shipments. However, thanks to the slow and steady improvement in general economy, the railroad company is seeing increase in the volume of industrial goods shipments. Union Pacific Corporation is also focusing on transporting shale oil.
The company CFO Rob Knight stated, "Our projections are that we'll continue to see strong growth in unit oil trains, which is shale-related oil. We're in a great position to haul both sand that goes into the drilling activities and then hauling the oil trains out of the shale activities."
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