Based on the aggregated intelligence of 120,000-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. Our data has shown that five-star stocks outperform the market by a significant margin; conversely, one-star stocks have woefully lagged the market average.

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

$2.65 Billion



Trailing-12-Month Revenue

$1.72 Billion


Chairman He Yuhua (Since June 2007)

General Manager Shen Yi (Since October 2008)

Return on Equity (Average, Past Three Years)


CAPS Members Bullish on GSH Also Bullish on:


Aluminum Corp. of China (NYSE:ACH)

China Mobile (NYSE:CHL)

CAPS Members Bearish on GSH Also Bearish on:

PetroChina (NYSE:PTR)

Citigroup (NYSE:C)

Ford Motor (NYSE:F)

Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.

On CAPS, 521 of the 538 members who have rated Guangshen -- some 97% -- believe the stock will outperform the S&P 500 going forward. These Foolish bulls include CAPS All-Star Theresewin and coregonus.

Last week, Theresewin urged our community to ride Guangshen all the way to gains: "[Get] on board while you still can ... China NEEDS its rail system to better integrate its country and is investing big bucks to do so!"

In a pitch from last month, coregonus agreed and elaborated on the strong long-term trends supporting the stock: 

Backing up my faith in railways, and that China is totally committed to rail in the long term -- if you have ever ridden their hi speed mag-lev train in Shanghai you get the depth of their commitment -- they know not everyone will have cars, it would not work there. As more cities get built out, trains will too -- and at the end there are real assets in the train business and freight on rail has very long legs (or tracks).

What do you think about Guangshen, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. More than 120,000 investors are waiting to hear what you have to say. CAPS is 100% free, so simply click here to get started.

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This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis -- even one of our own -- helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.