The stock of Kansas City Southern (NYSE:KSU) is now priced at $171.85 and the shares are 15.16 points up or 9.68% higher compared to its previous closing price of $156.69. The stock had 4.189 million contracts set over the past session. KSU shares’ daily volume is compared to its average trading volume at 1.083 million shares. However, it has a float of 93.92 million and although its performance was 11.09% over the week, it’s one to watch. Analysts have given the KSU stock a yearly average price target of $167.72 per share. It means the stock’s downside potential is -2.4% with the KSU share price recently placing at $152.18 to $184.16. However, some brokerage firms have priced the stock below the average, including one that has called $136.
The shorts are running away from the Kansas City Southern stock, with the latest data on short interest released on June 30, 2020, showing that short interest numbers in the KSU shares have declined. Short interest in the stock represents just 1.77% of its float, but the volume has dropped by 0.
In the last trading session, Kansas City Southern (NYSE:KSU) raised by $17.15 over the week and gained $24.67 on its 20-day. The stock’s high in the recent session is lower when compared to its 52-week high of $184.16. The stock recorded its established 52-week high on 07/31/20.
Since 03/18/20, the stock has traded to a low of $92.86 at 85.06%, an encouraging piece of data likely to interest most investors out to exploit the stock’s recent surge. The stock has a beta allocation of 0.92. Being above 1 means that the stock’s volatility is higher than the market and traders are keenly watching it.
Looking at current readings, Kansas City Southern’s two-week RSI is 70.16. This suggests that the stock is oversold at the moment and that KSU shares’ price movement remains not stable. The stochastic readings are equally revealing at 69.2% meaning the KSU share price is currently in neutral territory.
The technical chart shows that the KSU stock will likely settle at between $186.61 and $201.38 per share. However, if the stock dips below $154.63, then its market would become much weaker. Any downside could see the stock price sliding to levels as low as $137.42.
Currently, the stock is trading in the green of MACD, with a reading of 4.55. Investors always pay attention to any move above or below the zero-line, mainly because the indicator points to the position of the stock’s short-term average relative to its long-term measure. A MACD -a reading above the zero line means that the short-term is above the long-term average. This scenario implies that there is an upward momentum. The opposite is true when the MACD falls below the zero-line.
Analysts at JP Morgan cut their recommendation for KSU from Neutral to Underweight in April 09 review while maintai their target price of $130. Stifel analysts see the stock as a Buy with a target price of $146 in a flash note released to investors on April 07 resuming covering the stock. UBS seeing the stock struggling downgraded it from Buy to Neutral on April 01 placing it at $147 to $139.
The average rating for the KSU equity is 2.33 and is currently gathering a bullish momentum. Of 21 analysts tracking Kansas City Southern polled by Reuters, 10 rated KSU as a hold. The remaining 11 analysts were split evenly. However, the split wasn’t equal as a majority (10) rated it as a buy or strong buy. 1 analyst advised investors against buying the stock or to sell if they own any of the stock.
Elsewhere, the KSU stock price is 21.17X ahead of its 12-month Consensus earnings per share estimates. The stocks P/S ratio currently stands at 26.8 above the group’s average of 22.3. Kansas City Southern has its P/E ratio at 3.3, which means that the stock is currently trading at a discount relative to the 4.2 industry average.
Zacks Consensus Estimate forecasts that the current-quarter revenues for Kansas City Southern (NYSE:KSU) will decrease by about -99.88%, which will see them reach $658.76 million. The company’s full-year revenues are, however, expected to diminish by about -8.01%, down from $2870 million to $2640 million. KSU’s expected adjusted earnings should drop almost -13.4% to end up at $1.68 per share, while for the fiscal year, analysts project the company’s earnings to drop by about -4.06% to record $6.62/share.