Technical Research on Union Pacific and Kansas City Southern: Railroad Stocks Offer Good Returns

Technical Research on Union Pacific and Kansas City Southern: Railroad Stocks
                              Offer Good Returns

  PR Newswire

  LONDON, February 15, 2013

LONDON, February 15, 2013 /PRNewswire/ --

Railroad stock closely mimic general economic trend. This is especially true
in the case of railroad companies specializing in the transportation of
industrial goods. Kansas City Southern (NYSE: KSU) stock hit multiple 52 week
highs this year and reported good quarterly results, thanks to the increased
demand. Similarly, Union Pacific Corporation (NYSE: UNP) also provided robust
Q4 results. The industry faces the change in its dynamics as it witnesses
decline in coal shipment. At the very same time, shipment volume and value for
oil and gas is increasing, providing a cushion to the industry. StockCall has
posted free technical research reports on Union Pacific and  Kansas City
Southern, and these can be accessed by signing up at 
http://www.stockcall.com/analysis

Kansas City Southern Hits 5- Week High

Kansas City Southern derives half of its total revenue from chemicals and
industrial products transportation. Improvement in general economy and better
demand for goods bodes well for the fortunes of the company. The company also
has 7 percent revenue growth rate, which is among the best in the industry.
Kansas City Southern stock appreciated 17 percent on a YTD basis and is
expected to keep up the momentum. Kansas City Southern technical report can be
accessed for free by signing up at http://www.StockCall.com/KSU021513.pdf 

Kansas City Southern mainly operates in states like Texas and Alabama. Its
fourth quarter revenue stood at $568 million, up 7 percent, while its
operating income grew 15 percent to touch $174 million figure. Its adjusted
net earnings were at 92 cents per share, beating consensus estimate of 82
cents per share. The company is expected to show strong growth in the future
as well.

Kansas City Southern has witnessed a change in its revenue mix. Its coal
revenue is on the decline, but the negative impact is neutralized by the
increase in oil revenue. The company now also focuses on forest products and
intermodal shipment. Kansas City Southern is expected to report its first
quarter revenue at $587.3 million while its EPS is expected to be at 89 cents
per share. On the back of improved revenue and profitability, Kansas City
Southern stock may deliver more value to its holders.

Union Pacific Reports Results

Union Pacific Corporation announced healthy fourth quarter results. Its
revenue for the quarter stood at $5.25 billion while its EPS was reported at
$2.19 per share. The company also improved gross and net margins. For the
fiscal first quarter, the company expects to earn $5.25 billion in revenue.
Its EPS is likely to decline marginally to $1.99 per share. The stock is up 8
percent on a YTD basis. Based on its optimistic guidance, the stock is
expected to make move further up. Coupled with 2.03 percent dividend yield,
Union Pacific Corporation stock provides a good investment avenue. Download
the free report on Union Pacific Corporation upon registration at

http://www.StockCall.com/UNP021513.pdf 

Union Pacific Corporation faces the industry-wide problem of decline coal
shipments. However, thanks to the slow and steady improvement in general
economy, the railroad company is seeing increase in the volume of industrial
goods shipments. Union Pacific Corporation is also focusing on transporting
shale oil.

The company CFO Rob Knight stated, "Our projections are that we'll continue to
see strong growth in unit oil trains, which is shale-related oil. We're in a
great position to haul both sand that goes into the drilling activities and
then hauling the oil trains out of the shale activities."

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