[CNBC Television] Jim Cramer: Union Pacific should acquire Kansas City Southern

🎯 Загружено автоматически через бота: 🚫 Оригинал видео: 📺 Данное видео принадлежит каналу «CNBC Television» (@CNBCtelevision). Оно представлено в нашем сообществе исключительно в информационных, научных, образовательных или культурных целях. Наше сообщество не утверждает никаких прав на данное видео. Пожалуйста, поддержите автора, посетив его оригинальный канал. ✉️ Если у вас есть претензии к авторским правам на данное видео, пожалуйста, свяжитесь с нами по почте support@, и мы немедленно удалим его. 📃 Оригинальное описание: “That would make me want to buy this one hand over fist, especially if [the stock] keeps coming down,“ the “Mad Money“ host said in making the case for the railroad company Union Pacific. Subscribe to CNBC PRO for access to investor and analyst insights: CNBC’s Jim Cramer on Monday, reviewing earnings reports from the railroad companies that have reported thus far, suggested that the rail industry could benefit from consolidation. Cramer focused specifically on the largest of the bunch in Union Pacific, which has seen its shares fall double digits since releasing results Thursday morning. “Union Pacific’s getting hammered here in the wake of a not-so-hot quarter, not to mention a huge spike in Covid cases,” the “Mad Money” host said. “As the precision railroading story winds down, they need to give you a new catalyst.” Union Pacific reported a nearly 11% drop in business, missing on both revenue and profit estimates in the third quarter. The Omaha, Nebraska-based rail, which has homed in on modernized precision scheduled railroading to boost efficiency, was the only of its peers to fall short on profit expectations, Cramer noted. It doesn’t help that the company offered few details on its outlook, he added. The stock is down more than 7%, a nearly 15-point drop to $, since the Thursday morning earnings report. “How about if Union Pacific buys KSU, which just arguably reported the best quarter in the group?” Cramer pondered. “Union Pacific can absolutely afford it and in the last few weeks we’ve heard that KSU might be entertaining takeout offers from private equity firms.” Cramer thinks expectations were set too high for Union Pacific, which he considers to be the best-of-breed in rail, after CSX and Kansas City Southern both exceeded profit expectations, despite posting revenue declines compared to a year ago. Norfolk Southern is set to report results on Wednesday. The fifth major U.S. railroad company is Burlington Northern, which is owned by Berkshire-Hathaway. The whole industry is facing pressure amid the pandemic, but precision railroading appears to be helping companies like CSX and Kansas City Southern, while the method may be nearing its peak for Union Pacific, Cramer said. Kansas City Southern is a $16.8 billion operation based in Kansas City, Missouri. The market values Union Pacific at $125.5 billion, more than seven times Kansas City Southern. Both companies maintain similar routes, Cramer noted. » Subscribe to CNBC TV: » Subscribe to CNBC: » Subscribe to CNBC Classic: Turn to CNBC TV for the latest stock market news and analysis. From market futures to live price updates CNBC is the leader in business news worldwide. The News with Shepard Smith is CNBC’s daily news podcast providing deep, non-partisan coverage and perspective on the day’s most important stories. Available to listen by 8:30pm ET / 5:30pm PT daily beginning September 30: Connect with CNBC News Online Get the latest news: Follow CNBC on LinkedIn: Follow CNBC News on Facebook: Follow CNBC News on Twitter: Follow CNBC News on Instagram: #CNBC #CNBCTV