Kansas Story

<div class='circular--portrait' style='background:#FF6600;color: #FFFAFA;font-size:4em;'>KC</div>
KSU -- USA Stock  

USD 212.80  0.28  0.13%

It appears Kansas City may not recover as fast as we have hopped for as its price went down 0.39% today. Kansas City Southern's current daily volatility is 1.86 percent, with a beta of 0.24 and an alpha of 0.31 over DOW. As many baby boomers are still indifferent towards current volatility, Kansas City Southern. We will evaluate why we are still optimistic in anticipation of a recovery.
Published over three months ago
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Should you buy Kansas City Southern after the newest volatility gain?
Kansas City Southern has roughly 620.1 M in cash with 1.09 B of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 6.57. Macroaxis provides trade recommendations on Kansas City Southern to complement and cross-verify current analyst consensus on Kansas City. Our advice engine determines the firm's potential to grow exclusively from the perspective of an investor's current risk tolerance and investing horizon.
Investing in Kansas City, just like investing in any other equity instrument, is characterized by a strong risk-return correlation. High risks mean high returns and low risk means lower expected returns. Risk management is the act of identifying and assessing the potential risk and developing strategies to minimize these risks and earn maximum possible profits while holding Kansas City along with other instruments in the same portfolio. Using conventional technical analysis and fundamental analysis to select individual securities into a portfolio complements risk management and adds value to overall investors' investing strategies.
Sophisticated investors, who have witnessed many market ups and downs, frequently view the market will even out over time. This tendency of Kansas City's stock price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy. Please use the tools below to analyze the current value of Kansas City in the context of predictive analytics.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Kansas City. Your research has to be compared to or analyzed against Kansas City's peers to derive any actionable benefits. When done correctly, Kansas City's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy towards taking a position in Kansas City Southern.

How important is Kansas City's Liquidity

Kansas City financial leverage refers to using borrowed capital as a funding source to finance Kansas City Southern ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Kansas City financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Kansas City's total debt and its cash.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions. It is good to see analyst projects for Kansas City, but it might be worth checking our own buy vs. sell analysis

Kansas City Correlation with Peers

Investors in Kansas can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in Kansas City Southern. Diversification will allow for the same portfolio return with reduced risk. The correlation table of Kansas City and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities Kansas is related in some way. The cells in the table are color-coded to highlight significantly positive and negative relationships. Each cell shows the correlation between one pair of equities and can be used to run pair trading strategies or create efficient portfolios with your current brokerage. Please check volatility of Kansas for more details

Breaking down Kansas City Indicators

Kansas City appears to be very steady, given 1 month investment horizon. Kansas City Southern has Sharpe Ratio of 0.15, which conveys that the firm had 0.15% of return per unit of risk over the last month. Our standpoint towards estimating the volatility of a stock is to use all available market data together with stock specific technical indicators that cannot be diversified away. We have found twenty-one technical indicators for Kansas City, which you can use to evaluate future volatility of the firm. Please exercise Kansas City Southern Risk Adjusted Performance of 0.1798, mean deviation of 1.25, and Downside Deviation of 1.18 to check out if our risk estimates are consistent with your expectations.
Click cells to compare fundamentals   Check Volatility   Backtest Portfolio

Kansas City has 76 percent chance to finish below $186 next week

Kansas City newest coefficient of variation boosts over 559.82. Kansas City Southern has relatively low volatility with skewness of 2.27 and kurtosis of 8.7. However, we advise all investors to independently investigate Kansas City Southern to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns.

The Bottom Line

Whereas many of the other players within the railroads industry are still a little expensive, even after the recent corrections, Kansas City may offer a potential longer-term growth to private investors. To conclude, as of the 16th of October 2020, our primary 30 days buy-or-sell advice on the firm is Strong Buy. We believe Kansas City is currently undervalued with below average probability of financial unrest for the next two years.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of Kansas City Southern. Please refer to our Terms of Use for any information regarding our disclosure principles.

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