Why Genesee & Wyoming Is Poised to Keep Chugging

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, regional freight railroad operator Genesee & Wyoming (NYSE: GWR  ) has earned a respected four-star ranking.

With that in mind, let's take a closer look at Genesee & Wyoming and see what CAPS investors are saying about the stock right now.

Genesee & Wyoming facts

 

 

Headquarters (founded)

Greenwich, Conn. (1899)

Market Cap

$3.9 billion

Industry

Railroads

Trailing-12-Month Revenue

$858.0 million

Management

CEO John Hellmann (since 2007)

CFO Timothy Gallagher (since 2005)

Return on Equity (average, past 3 years)

9.8%

Cash/Debt

$516.0 million/$647.5 million

Competitors

Burlington Northern Santa Fe

OmniTRAX

Union Pacific (NYSE: UNP  )

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 97% of the 930 members who have rated Genesee & Wyoming believe the stock will outperform the S&P 500 going forward.

Earlier this week, one of those Fools, All-Star 3Fairfield, brought three of Genesee's recent developments to our community's attention:

1. Accretion from recent Rail America acquisition should show up on the financials in 2013. This rail system services mid-America and some of the Bakken oil fields requirements.

2. [Genesee & Wyoming] operates many of the short line feeder rail lines and services in the developing Utica Shale region in eastern Ohio and western Pennsylvania. These lines will substantially increase operations/revenue in the latter half of 2013 when well drilling increases in the area. ...

3. In December 2012 [Genesee & Wyoming] signed a contract to provide the rail services to the new $900 million dollar oil and nat gas services, switching and transfer hub being built in Scio, Ohio in anticipation of the increased Utica Shale nat gas and oil shipments. They expect 10,000 rail cars a year to go through this facility. All contracted phases of this hub will be completed by the second quarter of 2014 according to M3Midstream officials. There are other hubs that [Genesee & Wyoming] contracts for as well.

I believe [Genesee & Wyoming] is succeeding in bolstering growth from both acquisition and organic opportunities and I expect 2013 and 2014 will be excellent years for the rail road.

If you want market-thumping returns, you need to put together the best portfolio you can. Of course, despite a strong four-star rating, Genesee & Wyoming may not be your top choice.

We've found another stock we are incredibly excited about -- excited enough to dub it "The Motley Fool's Top Stock for 2013." We have compiled a special free report for investors to uncover this stock today. The report is 100% free, but it won't be here forever, so click here to access it now.

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