Kansas City Southern (NYSE:KSU)

CAPS Rating: 4 out of 5

A holding company with domestic & international rail operations in North America that are focused on the growing north/south freight corridor connecting key commercial & industrial markets in the central U.S. with major industrial cities in Mexico.

Recs

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Player Avatar NHWeston (< 20) Submitted: 6/25/2011 12:34:42 PM : Outperform Start Price: $55.59 KSU Score: +17.23

Railroads are coming back steadily, and KSU is especcially well positioned for a relatively smaller player. They move many farm and fuel commodities and, if we assume manufacturing in the Mid-West revives will benefit enormously. They also tie into construction, especially lumber and cement. KSU also extends into Mexico, a very unappreciated market. Management is excellent, tight with a buck, and exploring alternative energies. Finally, KSU is a first-rate buy-out candidate or junior partner in a merger. Buy some.

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