5-Star Stocks Poised to Pop: CSX

Brian D. Pacampara, The Motley Fool
Updated

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 coveted five-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

$22.4 billion

Industry

Railroads

Trailing-12-Month Revenue

$11.7 billion

Management

CEO Oscar Munoz
CFO Fredrik Eliasson

Return on Equity (average, past 3 years)

17.5%

Cash/Debt

$1.3 billion / $9.2 billion

Dividend Yield

2.2%

Competitors

Burlington Northern Santa Fe
Norfolk Southern
Union Pacific


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

On CAPS, 97% of the 2,018 members who have rated CSX believe the stock will outperform the S&P 500 going forward.

Earlier this week, one of those Fools, chicagoadvisor, succinctly summed up the bull case for our community:

A healthy railroad that will ride in the continued North American rail consolidation and economic expansion. Coal story is oversold, about 11% of earnings are driven by electricity generation in US, these same plants will continue to operate. CSX will continue to diversify its business and maybe hookup with [Norfolk Southern]. I like it. I own it.

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. Of course, despite a strong five-star rating, CSX may not be your top choice.

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At the time thisarticle was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. 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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