23 May

Why Did Kansas City Southern’s Rail Traffic Grow?

WRITTEN BY Anirudha Bhagat

Kansas City Southern

Kansas City Southern (KSU) reported a 1.8% YoY (year-over-year) improvement in its overall rail traffic in Week 20. The company hauled 44,959 units during the week compared to 44,165 units in Week 20 of 2018. Four of the seven Class I railroad companies recorded volume growth. Canadian Pacific Railway (CP) registering the highest increase of 2.8%. Union Pacific (UNP) was the worst performer with a decline of 4.2% YoY.

Why Did Kansas City Southern’s Rail Traffic Grow?

The YoY growth in Kansas City Southern’s overall rail traffic was mainly due to a strong increase in carload volumes. The railroad company’s carload traffic grew 5.8% YoY to 25,821 units from 24,396 units in the same week the previous year.

Kansas City Southern’s carload traffic for commodities, excluding coal and coke, rose 9.1% YoY to 22,879 units from 20,978 units. The company’s coal and coke traffic fell 13.9% YoY to 2,942 railcars from 3,418 railcars. Kansas City Southern’s grain, nonmetallic minerals, chemicals, petroleum, and metal volumes grew, while its coal, coke, metallic ores, and motor vehicles and equipment traffic fell YoY.

Six of the seven Class I railroad companies recorded carload traffic growth during Week 20, while one company registered a decline. Kansas City Southern registered the biggest gain, while Union Pacific reported the highest fall of 2.5%.

Intermodal units

Kansas City Southern’s intermodal volumes fell 3.2% YoY to 19,138 units from 19,769 units in the same week in 2018. Except for Canadian Pacific, all of the Class I railroad companies recorded intermodal volume declines during Week 20. Canadian Pacific’s intermodal traffic grew 3.3%. CSX (CSX) registered the highest intermodal decline of 11%.

Kansas City Southern stock has returned 27.1% YTD (year-to-date) and outperformed the Industrial Select Sector SPDR Fund’s (XLI) gains of 16.8% YTD. XLI invests in industrial stocks listed in the S&P 500. XLI has allocated 17.7% of its fund to the freight and logistics services industry.

Latest articles

This year, Pfizer (PFE) stock has fallen 0.34% and Bristol-Myers Squibb (BMY) stock has fallen 6.48%. Both companies are focused on strengthening their position in the high-growth oncology and immunology markets. Let's take a closer look at each.

Walt Disney’s (DIS) latest movie, Toy Story 4, has reportedly broken records in the opening weekend with $118 million in sales. However, the opening weekend collection was behind analysts’ expectations of at least $150 million in the first weekend.

24 Jun

Will Home Depot’s Upward Momentum to Continue?

WRITTEN BY Rajiv Nanjapla

As of June 21, Home Depot (HD) was trading at $209.39, which implies a rise of 9.7% since the announcement of its first-quarter earnings on May 21. Also, the company was trading at a premium of 32.4% from its 52-week low of $158.09 and a discount of 2.8% from its 52-week high of $215.43.

On June 21, Aurora Cannabis (ACB) made an announcement that indicated that it will move towards higher margin vape products. In addition, the company also believes concentrates and edibles will command higher margins. In anticipation of this development, the company announced the expansion of its facility to capitalize on growth related to these segments.

Shares of Mondelēz International (MDLZ) are scaling new heights thanks to its stellar gains so far this year. Mondelēz stock is up 38.0% on a YTD (year-to-date) basis, and it closed at $55.25—just a shade lower than its 52-week high of $55.71—on June 21.

24 Jun

How Long Will Facebook's Libra Fuel Bitcoin Rally?

WRITTEN BY Mayur Sontakke, CFA, FRM

Ever since the news about Facebook’s (FB) cryptocurrency project broke, Bitcoin has rallied on the hope that Facebook’s entry in the space will help make cryptocurrencies mainstream. Facebook’s cryptocurrency will be called Libra and will be governed by an association with 28 founding members across industries.

172.31.16.229