Kansas Story

KSU -- USA Stock

USD 210.14 5.99 2.77%

Macroaxis Story

Kansas City Southern is scheduled to announce its earnings tomorrow. The upcoming quarterly report is expected on the 22nd of January 2021. While many traders are getting carried away by overanalyzing industrials space, it is reasonable to review Kansas City under the newest economic conditions. We will evaluate why we are still optimistic in anticipation of a recovery.

Published over a month ago

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Chances of Kansas City (NYSE:KSU) to drop in February

Kansas City is FAIRLY VALUED at 204.82 per share with modest projections ahead. 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.

What is the right price you would pay to acquire a share of Kansas City? For most investors, it would be the price that gives them a wide margin of safety to have minimal downside risk. In other words, most investors are always looking for undervalued stocks. Even if the future performance is not entirely as expected, the loss of holding it is minimized, and the downside risk is negated.

Please read more on our stock advisor page.

What is happening with Kansas City Southern this year

Annual and quarterly reports issued by Kansas City Southern are formal financial statements that are published yearly and quarterly and sent to Kansas stockholders. The reports show and break down the current year's ongoing operations and discuss plans for the upcoming year. Annual reports have been a requirement from the Securities and Exchange Commission (SEC) for businesses owned by the public since 1934.

Companies such as Kansas City often view their annual report as an effective marketing tool to disseminate their perspective on company future earnings or innovations. With this in mind, many companies devote large sums of money to making their reports attractive and informative. In such instances, the annual report becomes a forum through which a company can communicate to the general public any number of topics that may or may not be directly related to the actual data published in the reports.

How Kansas utilizes its cash?

To perform a cash flow analysis of Kansas City, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Kansas City is receiving and how much cash it distributes out in a given period. The Kansas City cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.

Kansas City Net Cash Flow from Operations is comparatively stable at the moment as compared to the past year. Kansas City reported Net Cash Flow from Operations of 1.08 Billion in 2020

Breaking down Kansas City Indicators

Earning per share calculations of the firm is based on official Zacks consensus of 7 analysts regarding Kansas City's future annual earnings. Given the historical accuracy of 95.3%, the future earnings per share of the company is estimated to be 7.0137 with the lowest and highest values of 6.95 and 7.1, respectively. Please note that this consensus of annual earnings estimates for Kansas City Southern is an estimate of EPS before non-recurring items and including employee stock options expenses.

Is Kansas a risky opportunity?

Let's check the volatility. Kansas is looking slightly risky at this time. Whether you invest your money or manage your clients' funds, remember that it is easy to forget that behind Kansas (NYSE:KSU) stock is an actual business venture. So, do not let stock picking become an abstract concept by ignoring the elementary risk calculations. acquiring a share of a Kansas City stock makes you a part-owner of that company.

Kansas City Southern Current Consensus

Here is the newest trade recommendation based on an ongoing consensus estimate among financial analysis covering Kansas City Southern. The Kansas consensus assessment is calculated by taking the average estimates from all of the analysts covering Kansas City

Strong Buy

Hold

Strong Buy	6	40.0
Buy	0	0.0
Hold	9	60.0
Sell	0	0.0
Strong Sell	0	0.0

Analysis of Kansas City Southern

Potential upside is down to 2.28. It may call for a possible volatility drop. As of the 21st of January, Kansas City secures the Downside Deviation of 1.34, mean deviation of 0.9901, and Risk Adjusted Performance of 0.1678. Kansas City Southern technical analysis lets you operate historical price patterns with an objective to determine a pattern that forecasts the direction of the firm's future prices. Strictly speaking, you can use this information to find out if the firm will indeed mirror its model of past prices, or the prices will eventually revert. We were able to analyze nineteen technical drivers for Kansas City, which can be compared to its peers in the industry. Please verify Kansas City Southern standard deviation, value at risk, as well as the relationship between the Value At Risk and kurtosis to decide if Kansas City Southern is priced some-what accurately, providing market reflects its recent price of 212.99 per share. Given that Kansas City Southern has jensen alpha of 0.1214, we recommend you to check Kansas City's last-minute market performance to make sure the company can sustain itself at a future point.

Our Final Takeaway

Whereas other companies under the railroads industry are still a bit expensive, Kansas City may offer a potential longer-term growth to private investors. All things considered, as of the 21st of January 2021, we believe Kansas City is currently fairly valued. It follows the market closely and projects low odds of financial turmoil in the next two years. Our primary 30 days advice on the firm is Strong Buy.

About Contributor

Raphi Shpitalnik is a Junior Member of Macroaxs Editorial Board. Raphael is a young entrepreneur who joined Macroaxis on a part-time base at the beginning of the pandemic and eventually acquired a real test for investing and fintech. He likes to analyze different equity instruments across a wide range of industries, focusing primarily on consumer products, sports, fintech, cannabis, and AI. View Profile

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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