Source: Wall Street Journal
I have been bearish on cyclical names like Kansas City Southern (KSU) for years. The coronavirus has brought the economy to a practical standstill, hurting rail traffic. The question remains, "Is this a short-term phenomenon or will economic malaise last for the foreseeable future?" The answer could drive how you value KSU. In its most recent quarter, the company reported revenue of $731.7 million. Carload revenue grew 7% Y/Y on a 4% rise in carloads and 3% rise in average selling price ("ASP"). Each of the company's six product categories reported