Kansas City Southern KSU saw a big move last session, as the company’s shares fell over 7% on the day. The move came on pretty good volume too with far more shares changing hands than in a normal session. This breaks the recent trend of the company, as the stock is now trading below the volatile price range of $86.6 to $93.7 in the past one-month time frame.
On Dec 2, the company provided a disappointing outlook for fourth-quarter revenues. The company expects the revenues to decline at a high single-digit percentage rate from a year ago.
This slump shouldn’t be too much of a surprise to investors, as the railroad company has seen 1 negative revision in the past few weeks and its current year earnings consensus has moved lower over the last 30 days. This suggests there may be more trouble down the road. So make sure to keep an eye on this stock going forward to see if this recent slump will continue, as the earnings picture definitely suggests that this might be the case.
KSU currently has a Zacks Rank #3 (Hold) while its Earnings ESP is positive.
A better-ranked stock in Transportation sector is USD Partners LP USDP, which currently carries a Zacks Rank #1 (Strong Buy).
Is KSU going up? Or down? Predict to see what others think: Up or Down
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