SeekingAlpha
Railroad Stocks Right on Track
Monday February 12, 4:16 am ET
Stockerblog submits: The railroad industry is an area that has been overlooked by many investors, maybe because they consider it “too 19th century.”
However, this group may have several investment opportunities as most of the railroads pay dividends and many have relatively low P/E ratios. So how do you analyze a railroad, besides looking at the usual statistics? First, you have to look at the items they transport. Is there a strong demand for the commodities that they haul? Is that demand expected to get stronger in the future?
In addition, you have to look at the cost of fuel for their locomotives, and their ability to pass on that cost to their customers. Here is a list of the major rails, most of which are traded on the New York Stock Exchange:
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