4-Star Stocks Poised to Pop: CSX

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

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

CSX facts

Headquarters (Founded)Jacksonville, Fla. (1978)
Market Cap$22.1 billion
IndustryRailroads
Trailing-12-Month Revenue$11.6 billion
ManagementChairman/CEO Michael Ward (since 2003)
CFO Oscar Munoz (since 2003)
Return on Equity (Average, Past 3 Years)17.2%
Cash/Debt$641 million / $8.65 billion
Dividend Yield2.3%
CompetitorsCanadian National Railway (NYS: CNI)
Norfolk Southern (NYS: NSC)
Union Pacific (NYS: UNP)

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

On CAPS, 96% of the 1,951 members who have rated CSX believe the stock will outperform the S&P 500 going forward. These bulls include cjeck and All-Star JTMcGee, who is ranked in the top 10% of our community.

Just last month, cjeck touched on the tailwinds working in the stock's favor: "[I] expect [CSX] to have more business with the trend upward of expenses for other means of shipping."

In fact, CSX currently trades at a cheapish forward P/E of 11.0. That represents a slight discount to other railroad stocks like CN Railway (14.3), Norfolk Southern (12.2), and Union Pacific (12.9).

CAPS All-Star JTMcGee elaborates on the CSX bull case:

Feel safe giving this an outperform over the next 5 years. I expect auto parts/finished autos to increase, total cargo to increase, and don't think coal regulations are a real threat. An end to cheap coal doesn't mean an end to coal production, it just means it has to get shipped internationally to be used.

What do you think about CSX, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!

Interested in another easy way to trackCSX?Add it to your watchlist.

At the time this article was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Motley Fool newsletter services have recommended buying shares of CN Railway. 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.

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