SOURCE: StockCall

StockCall

December 17, 2010 08:18 ET

Equity Research on Kansas City Southern and Union Pacific Corp. - Health of Railroads Denotes the Strength of the Economy

JOHANNESBURG, SOUTH AFRICA--(Marketwire - December 17, 2010) - www.stockcall.com/ offers investors comprehensive research on the railroads industry and has completed analytical research on Kansas City Southern (NYSE: KSU) and Union Pacific Corp. (NYSE: UNP). Register with us today at www.stockcall.com/ to have free access to these researches. 

Railroads have historically been a good bellwether for the health of the overall economy. The more goods being purchased and manufactured, the more car loads and rail traffic for the Railroads sector. After a decline in rail traffic through both 2008 and 2009, the sector is glad to see that carloads are up 7% year to date. Register now at https://stockcall.com/development/stockcall/page.php?name=register.html to have free access to our reports on the railroads industry.

www.stockcall.com/ is an online platform where investors doing their due-diligence on the railroads industry can have easy and free access to our analyst research and opinions on Kansas City Southern and Union Pacific Corp.; investors and shareholders of these companies can simply register for a complimentary membership at https://stockcall.com/development/stockcall/page.php?name=register.html

The growth has been in hard to handle raw materials like coal, grain, and non-metallic minerals. While automotive and agricultural use has been down, this is consistent with past trends that saw these segments tail off during the winter. Coal traffic which accounts for 46% of the total industry was up 2.9% in November YTD. The sector as a whole has seen its stock values jump approximately 40% this year. Visit www.stockcall.com/ to see how companies in this industry have grown over the past years and how they are expected to perform in the future.

One positive trend for the railroads sector is the government's concerted effort to devalue the dollar. When the dollar is weak, commodities tend to increase in value. Since commodities are the primary load for the railways, they gain a measure of pricing power. Low currency levels also inspire international companies to expand their manufacturing operations in the U.S. which creates even more rail traffic. The dollar is expected to remain weak due to the Fed's $600 billion second round of quantitative easing.

Taking a look at results posted during the third quarter some of the railway companies, Kansas City Southern saw its earnings for the quarter grow to $50.2 million on revenue of $438.3 million, up 13.5% as opposed to last year's figure. Kansas City Southern research report is accessible for free by registering today at www.stockcall.com/KSU171210.pdf

Conversely, Union Pacific Corp. posted a rise of 51% in its profits as freight volume surged for the quarter. Profits came in at $778 million on revenue of $4.4 billion, up 20%. Union Pacific Corp. research report is available for free by signing up now at www.stockcall.com/UNP171210.pdf

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