5-Star Stocks Poised to Pop: RailAmerica

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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, short-line railroad operator RailAmerica (NYS: RA) has earned a coveted five-star ranking.

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

RailAmerica facts

Headquarters (founded)Jacksonville, Fla. (1985)
Market Cap$1.2 billion
IndustryRailroads
Trailing-12-Month Revenue$569.6 million
ManagementCEO John Giles (since 2007)
CFO B. Clyde Preslar (since 2008)
Return on Equity (average, past 3 years)0.9%
Cash/Debt$98.5 million / $655.9 million
CompetitorsGenesee & Wyoming
OmniTRAX
Watco Cos.

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

On CAPS, 96% of the 110 members who have rated RailAmerica believe the stock will outperform the S&P 500 going forward.

Just yesterday, one of those Fools, NHWeston102, tapped management's recent consideration of a potential sale as a bonus to the RailAmerica bull case:

Betting on the buyout has a logic all its own, but this little collections of shortline railroads has a lot else going for it. They serve many neglected areas that contribute to freight commodities not covered by the powerhouse lines. In bad times, they can always sell off a piece or two to ambitious locals and make money. A buyout baron will think the same thing -- that the parts are worth more than the whole.

If you want market-topping 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 a strong five-star rating, RailAmerica may not be your top choice.

We've found another stock we are incredibly excited about -- excited enough to dub it "The Motley Fool's Top Stock for 2012." We have compiled a special free report for investors to uncover this stock today. The report is 100% free, but it won't be here forever, so click here to access it now.

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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 Genesee & Wyoming. 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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