For the first time since March, there's a new favorite stock among the 30,000 rated players participating in Motley Fool CAPS, the Fool's free investing-intelligence community.

Unit Corp. (NYSE:UNT) -- which had been the reigning champ for the past three months -- didn't even crack the top 10 this time around.

No, this month the honor goes to Connecticut-based railroad company Genesee & Wyoming (NYSE:GWR).

And while Motley Fool Hidden Gems pick Mueller Water remained in the top three, there are some new faces on this month's list:


Market Cap (in millions)

Genesee & Wyoming


Canadian Natural Resources (NYSE:CNQ)


Mueller Water


Leucadia National (NYSE:LUK)


Chicago Bridge & Iron


American Dairy


Comtech Group (NASDAQ:COGO)


Tele Norte Leste Participacoes S.A.


Huaneng Power


AAR Corp


Data provided by Capital IQ, a division of Standard & Poor's.

Is that you, Jay Gould?
I must admit that I was a little shocked to see a 108-year-old railroad company with a P/E of 9.7 sitting at the top of CAPS investors' lists.

I mean, railroad stocks? That's so 1870s.

Or is it? After all, Warren Buffett recently revealed purchases of Burlington Northern Santa Fe (NYSE:BNI), Union Pacific, and Norfolk Southern (NYSE:NSC) for the Berkshire Hathaway portfolio. Maybe the railroads aren't so antiquated.

Perhaps Buffett is looking to capitalize on the growing popularity of railways as a cost-effective choice for domestic commodity transportation, as high gasoline prices are rendering truck transportation less profitable. In fact, based on data from the American Association of Railroads, rail freight volume set a new record in 2006, with 1.74 trillion ton miles, up 2.5% from 2005.

But as the three railroad stocks in Buffett's portfolio are all trading within 10% of their 52-week highs, investors may be turning their attention to deeper values in the sector. Trading with a P/E roughly half that of Union Pacific and Burlington Sante Fe, Genesee & Wyoming has received the highest marks of any stock in the market, according to more than 30,000 CAPS investors.

What do you think? To voice your opinion on Genesee & Wyoming, or any stock for that matter, join CAPS today by following this link.

Todd Wenning's favorite old train station is Union Terminal in Cincinnati. He does not own shares of any company mentioned. Unit Corp. is a Motley Fool Stock Advisor pick. Berkshire Hathaway is an Inside Value pick. The Fool has a disclosure policy.