5 In Focus: Loop Capital Analysts Railroad Stocks Following Wednesday's Conferences

On Wednesday, railroad firms participated in a couple of conferences, hosted by Cowen & Co. and RBC Capital Markets. As a result, five stocks within the sector were analyzed by Loop Capital Markets, four Hold-rated and one rated at Buy.

4 At Hold

• CSX Corporation (NASDAQ: CSX): The company sees efficiency and productivity savings to top $350 million compared to its "about" $350 million outlook provided earlier and coal tonnage is expected to witness a year-over-year drop of 20–25 percent, which is better than its earlier forecast of about 25 percent drop.
• Norfolk Southern Corp. (NYSE: NSC): The company is poised to gain a minimum of $200 million from productivity savings.
• Union Pacific Corporation (NYSE: UNP): There is no change in volume forecast for the third quarter or full year.
• Canadian Pacific Railway Limited (USA) (NYSE: CP): The company is maintaining its double digit EPS growth implying a minimum of EPS of $11.11, which is better than the consensus of $10.60.

Related Link: Lackluster Q3 Outlook Weighs On Rail Names

1 Buy

• The brokerage has a Buy rating on Kansas City Southern (NYSE: KSU). The company expects the second half of the current year to be better than the first half partly due to a rebound in auto.

At Time Of Writing...

• Canadian Pacific was down 1.08 percent at $154.09.
• CSX was up 0.49 percent at $28.95.
• Kansas City was up 0.49 percent at $97.06.
• Norfolk Southern was up 0.02 percent at $93.97.
• Union Pacific was up 0.37 percent at $96.64.

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