Source: The Wall Street Journal
Concerns over the direction of the global economy dominate the public discourse. President Trump continues to rave about the economy.
I prefer old school vital signs like rail traffic as a barometer. Kansas City Southern (KSU), like other railroads, reported stagnant rail traffic in Q2 2019. The company beat on revenue and non-GAAP EPS, but missed on GAAP EPS. The stock still rose 5% post-earnings.
I believe railroad stocks should rise and fall with the vagaries of the global economy. In my opinion, tax cuts, trade wars and