I have been bullish on the railroads as an industry for some time and Kansas City Southern (KSU) has been one of my favorites. The railroad’s most recent quarterly earnings report was strong and the stock is up 60% year-to-date. As you might expect, shares of the railroad are now trading with an extended valuation.
Are improving business fundamentals and double-digit dividend growth enough to make up for a mid-20s multiple?
Recent Earnings Results – Strong Revenue Growth Despite Flat Volumes
On 10/18/2019, Kansas City Southern reported third quarter earnings results.
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