Why CSX Is Poised to Keep Chuggin'

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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 has earned a coveted five-star ranking.

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

CSXfacts

Headquarters (founded)

Jacksonville, Fla. (1978)

Market Cap

$24.9 billion

Industry

Railroads

Trailing-12-Month Revenue

$11.8 billion

Management

Chairman/CEO Michael Ward

CFO Fredrik Eliasson

Return on Equity (average, past 3 years)

20.4%

Cash/Debt

$1.1 billion / $9.4 billion

Dividend Yield

2.5%

Competitors

Norfolk Southern

Union Pacific


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

On CAPS, 97% of the 2,121 members who have rated CSX believe the stock will outperform the S&P 500 going forward.

Just last week, one of those Fools, All-Star BoiseKen, tapped CSX as a particularly solid opportunity:

CSX is depressed vs. Canadian National Railway & [Union Pacific] (two other companies I gave the green thumb to). ... I think the problem is that CSX is being sold because of a SHORT-TERM issue related to the price between coal & natural gas. This problem is likely to resolve in the long-run because 1) NG prices may rise and demand continues to rise. 2) Not all utilities can switch to NG -- coal demand will flatten. 3) Crude oil by rail could fill in some of the softness from coal.

In the long run, CSX is a winner -- the P/E will rise toward to peers and get a little extra dividend yield while I wait.

If you want market-thumping returns, you need to put together the best portfolio you can. Of course, despite a strong five-star rating, CSX 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 2013." 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.

The article Why CSX Is Poised to Keep Chuggin' originally appeared on Fool.com.

Motley Fool contributor Brian Pacampara has no position in any stocks mentioned. The Motley Fool recommends Canadian National 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 Motley Fool has a disclosure policy.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

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