4-Star Stocks Poised to Pop: Kansas City Southern
Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, railroad operator Kansas City Southern (NYS: KSU) has earned a respected four-star ranking.
With that in mind, let's take a closer look at Kansas City Southern's business and see what CAPS investors are saying about the stock right now.
Kansas City Southern facts
Headquarters (Founded) | Kansas City, Mo. (1962) |
Market Cap | $7.6 billion |
Industry | Railroads |
Trailing-12-Month Revenue | $2.1 billion |
Management | CEO David Starling (since 2010) |
Return on Equity (Average, Past 3 Years) | 7.2% |
Cash/Debt | $72.4 million / $1.6 billion |
Competitors | Burlington Northern Santa Fe |
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 97% of the 429 members who have rated Kansas City Southern believe the stock will outperform the S&P 500 going forward.
This month, one of those Fools, CMichaelCroston, succinctly summed up the bull case for our community:
[Kansas City Southern] just started a tender offer for [$275 million] in notes, with a goal of eliminating debt. It also stands to benefit from a strengthening peso against the dollar along with higher automobile shipment from Mexico. Being in the plains corridor, it is well positioned for shipment for infrastructure improvement as well as pipeline construction.
If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future. Of course, despite a strong four-star rating, Kansas City Southern may not be your top choice.
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Want to see how well (or not so well) the stocks in this series are performing? Follow the newTrackPoisedToCAPS account.
At the time thisarticle was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.
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