February 24, 2012
The following video is part of our "Motley Fool Conversations" series, in which industrials editors and analysts Isaac Pino and Brendan Byrnes discuss topics across the investing world.
In today's edition, Isaac and Brendan discuss two recent events that could be a cause for concern in the railroad industry. Shares of CSX and Norfolk Southern were downgraded from neutral to overweight by J.P. Morgan. An analyst pointed to concerns about reduced coal traffic and advancements in the trucking industry due to natural gas engines. In addition, an ongoing debate over limiting the size of long-haul trucks continues. This could pose a threat to railroads if federal limits are lifted and trucking becomes even more competitive on longer route deliveries. Find out whether Isaac believes this will hinder the growth of railroads, or if this business model will continue to thrive.
Transportation methods will continue to evolve, but one thing seems for sure -- spiking oil prices look like they are here to stay. Railroads present a value proposition during a period of high oil prices, but there's another way to tap into surging profits for energy companies. Take a look at the top oil stocks recommended by Motley Fool analysts in a recent special free report: "3 Stocks for $100 Oil." The report won't be available forever, so we invite you to enjoy a free copy today. You can access it by clicking here. Fool on!