5-Star Stocks Poised to Pop: Guangshen Railway

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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, Chinese railroad operator Guangshen Railway (NYS: 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$3.7 billion
IndustryRailroads
Trailing-12-Month Revenue$2.3 billion
ManagementCEO Shen Yi (since 2008)
Chief Accountant Tang Xiangdong (since 2008)
Return on Equity (average, past 3 years)6.5%
Cash/Debt$801.9 million / $552.1 million
Dividend Yield4.1%
CompetitorsCathay Pacific Airways
China Southern Airlines
MTR

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

On CAPS, 97% of the 764 members who have rated Guangshen believe the stock will outperform the S&P 500 going forward.

Last year, one of those Fools, BodyByDave, succinctly summed up the bull case for our community:

With China in the middle of an industrial revolution, its thirst for energy, raw materials, equipment and technology is unquenchable! Many of these materials, equipment, finished products and new employees will require economical transportation. Guangshen Railway is poised to capitalize on this demand for transportation and should create a nice return for shareholders over the next 5 years.  

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 "Secure Your Future With 9 Rock-Solid Dividend Stocks," which uncovers several 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 newTrackPoisedToCAPS account.

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 Guangshen. 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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