Kansas City Southern (NYSE:KSU)
Railroad company Kansas City Southern (NYSE:KSU) is the newest member of the S&P, having joined the index just yesterday. Yet many analysts believe that its days in the index may be short-lived, not because of any problems or prospects of failure but rather because it represents an attractive takeover target. With the boom in the railroad industry lately, Kansas City Southern has a lucrative asset: cross-border operations that give the company access to the booming Mexican market. When you consider all the attention to rail-based transport of oil, the argument for consolidation gets even better.
Of course, once a company makes it into the S&P 500 (S&P Indices:.INX), there are still higher aspirations it can strive for and more exclusive benchmarks to try to join. But no matter how high a company goes, the day on which it becomes part of the S&P 500 will always represent a major milestone in its corporate history.
The article Meet the 4 Newest Members of the S&P 500 originally appeared on Fool.com and is written by Dan Caplinger.
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