Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.

Recs

0

Why CSX Is Poised to Keep Chuggin'

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, railroad operator CSX (NASDAQ: CSX  ) has earned a coveted five-star ranking.

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

CSX facts

Headquarters (founded)

Jacksonville, Fla. (1978)

Market Cap

$24.9 billion

Industry

Railroads

Trailing-12-Month Revenue

$11.8 billion

Management

Chairman/CEO Michael Ward

CFO Fredrik Eliasson

Return on Equity (average, past 3 years)

20.4%

Cash/Debt

$1.1 billion / $9.4 billion

Dividend Yield

2.5%

Competitors

Norfolk Southern

Union Pacific

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

On CAPS, 97% of the 2,121 members who have rated CSX believe the stock will outperform the S&P 500 going forward.

Just last week, one of those Fools, All-Star BoiseKen, tapped CSX as a particularly solid opportunity:

CSX is depressed vs. Canadian National Railway & [Union Pacific] (two other companies I gave the green thumb to). ... I think the problem is that CSX is being sold because of a SHORT-TERM issue related to the price between coal & natural gas. This problem is likely to resolve in the long-run because 1) NG prices may rise and demand continues to rise. 2) Not all utilities can switch to NG -- coal demand will flatten. 3) Crude oil by rail could fill in some of the softness from coal.

In the long run, CSX is a winner -- the P/E will rise toward to peers and get a little extra dividend yield while I wait.

If you want market-thumping returns, you need to put together the best portfolio you can. Of course, despite a strong five-star rating, CSX 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.


Read/Post Comments (0) | Recommend This Article (0)

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2394731, ~/Articles/ArticleHandler.aspx, 8/25/2016 2:11:09 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 4 hours ago Sponsored by:
DOW 18,481.48 -65.82 -0.35%
S&P 500 2,175.44 -11.46 -0.52%
NASD 5,217.70 -42.38 -0.81%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

8/24/2016 4:00 PM
CSX $28.48 Down -0.05 -0.18%
CSX CAPS Rating: *****
CNI $64.96 Down -0.20 -0.31%
Canadian National… CAPS Rating: *****
NSC $92.10 Up +0.07 +0.08%
Norfolk Southern CAPS Rating: *****
UNP $95.48 Down -0.53 -0.55%
Union Pacific CAPS Rating: *****

Advertisement