Please ensure Javascript is enabled for purposes of website accessibility

5-Star Stocks Poised to Pop: Guangshen Railway

By Brian D. Pacampara, CFA – Updated Apr 7, 2017 at 1:15PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Market-trouncing returns could be written in these five stars.

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

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

Guangshen facts

Headquarters (founded) Shenzhen, China (1996)
Market Cap $2.0 billion
Industry Railroads
Trailing-12-Month Revenue $2.3 billion
Management General Manager Shen Yi (since 2008)
Chief Accountant Tang Xiangdong (since 2008)
Return on Equity (average, past 3 years) 6.7%
Cash / Debt $853.6 million / $548.8 million
Dividend Yield 4.8%
Competitors Cathay Pacific Airways
China Southern Airlines
MTR

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

On CAPS, 97% of the 750 members who have rated Guangshen believe the stock will outperform the S&P 500 going forward.

Earlier this week, one of those bulls, Frycup, tapped Guangshen as a particularly tangible income opportunity: "Great buy in point in low $14's. Easily able to handle the dividend payment. Feeling a hangover along with other Chinese stocks. This is a company with hard assets so not concerned about the massive fraud that we've seen in others."

If you want market-thumping returns, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future. Of course, despite its five-star rating, Guangshen may not be your top choice.

If that's the case, we've compiled a special free report for investors called "The 3 Dow Stocks Dividend Investors Need," which uncovers a few other juicy income opportunities. The report is 100% free, but it won't be around forever, so click here to access it now.

Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Guangshen Railway Company Limited Stock Quote
Guangshen Railway Company Limited
GSH

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
332%
 
S&P 500 Returns
104%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 10/01/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.