A Critical Moment For Kansas City Southern (KSU), FirstEnergy Corp. (FE)

A look at its monthly performance shows that Kansas City Southern (NYSE:KSU) has recorded a 1.57% gain over the past 30 days. Over the past 12 months the stock has embarked on a rally that has seen it rise 0.37% and is now up by 9.11% since start of this year. The equity price sank -1.01% this week, a trend that has led to both investors and traders taking note of the stock. Its equity price climbed by 0.09% over the past three months which led to its overall six-month decrease to stand at -9.45%.

The shares of Kansas City Southern (KSU) dropped by -13.45% or -$16.19 from its last recorded high of $120.34 which it attained on August 29 to close at $104.15 per share. Over the past 52 weeks, the shares of Kansas City Southern has been trading as low as $90.55 before witnessing a massive surge by 15.02% or $13.6. This price movement has led to the KSU stock receiving more attention and has become one to watch out for. It jumped by 1.29% on Tuesday and this got the market excited. The stock’s beta now stands at 0.89 and when compared to its 200-day moving average and its 50-day moving average, KSU price stands -2.9% below and 3.24% above respectively. Its average daily volatility for this week is 2.07% which is less than the 2.1% recorded over the past month.

Experts from research firms are bullish about the near-term performance of Kansas City Southern with most of them predicting a $123.47 price target on a short-term (12 months) basis. The average price target by the analysts will see a 18.55% rise in the stock and would lead to KSU’s market cap to surge to $12.57B. The stock has been rated an average 2.2, which roughly stands towards the bearish end of the spectrum. Reuters looked into the 19 analysts that track Kansas City Southern (NYSE:KSU) and find out that 7 of them rated it as a Hold. 12 of the 12 analysts rated it as a Buy or a Strong Buy while 0 advised investors to desist from buying the stock or sell it if they already possess it.

A look at KSU technical analysis shows that its 14-day Relative Strength Index (RSI) is in a neutral zone after reaching 51.31 point. Its trading volume has added 207659 shares compared to readings over the past three months as it recently exchanged 1357659 shares. This means there is improved activity from short-term traders as per session, its average trading volume is 1150000 shares, and this is 1.18 times the normal volume.

The price of FirstEnergy Corp. (NYSE:FE) currently stands at $39.52 after it went up by $0.17 or 0.43% and has found a strong support at $39.22 a share. If the FE price drops below that critical support, then it would lead to a bearish trend. In the short-term, a dip below the $38.92 mark would also be bad for the stock as it means that the stock would plunge by 1.52% from its current position. However, if the stock price is able to trade above the resistance point around $39.8, then it could likely surge higher to try and break the upward resistance which stands at $40.08 a share. Its average daily volatility over the past one month stands at 1.62%. The stock has plunged by 0.81% from its 52-weeks high of $39.2 which it reached on Dec. 12, 2018. In general, it is 21.33% above its 52-weeks lowest point which stands at $31.09 and this setback was observed on Feb. 13, 2018.

Analysts have predicted a price target for FirstEnergy Corp. (FE) for 1 year and it stands at an average $41/share. This means that it would likely increase by 3.74% from its current position. The current price of the stock has been moving between $39.2 and $39.78. Some brokerage firms have a lower target for the stock than the average, with one of them setting a price target as low as $38. On the other hand, one analyst is super bullish about the price, setting a target as high as $46.

The FE stock Stochastic Oscillator (%D) is at 86.08%, which means that it is currently overbought and its prices could dip very soon. The shares P/S ratio stands at 1.68 which compares to the 3.27 recorded by the industry or the 2.34 by the wider sector. The stock currently has an estimated price-earnings (P/E) multiple of 15.47, which is higher than the 0 multiple of 12-month price-earnings (P/E). The company’s earnings have gone down, with a quarterly decrease rate of -32.9% over the past five years.

Analysts view FirstEnergy Corp. (NYSE:FE) as a Hold, with 2.1 consensus rating. Reuters surveyed 18 analysts that follow FE and found that 6 of those analysts rated the stock as a Hold. The remaining 12 were divided, with 12 analyst rating it as a Buy or a Strong Buy while 0 analysts advised investors to desist from buying FirstEnergy Corp. (FE) shares or sell it if they already own it.