Date updated:02-18-2009
Few sectors are as vital towards to health of the broader market and economy as the rails. Acting as a real-time gauge of import and export demand, both domestically and internationally, the trading action in the rail stocks severs as an important economic barometer towards the health of the global economy. If per-ton rates and cargo levels per-hopper or railcar are high, it is safe to assume that worldwide demand for various commodities are also running high, thus hinting at a robust global growth picture.
Economic data such as Gross Domestic Product (GDP) or Gross National Product (GNP) are inertly flawed as they are only available quarterly, are backward looking, are subject to revisions or tweaks down the road, and include governmental data---thus offering little clarity into potential economic growth ahead.
Paying attention to the rail stocks on both an intra-day and longer-term bases offers a good tell on the global economy.

-
CSX
C S X Cp - $48.62
- -1.06%
- $48.29
CSX has traded in a 52-week range of $70.70 to $27.61 with a current price per share of $29.22. On January 12th, CSX lowered their fourth-quarter earnings to 63 cents per share and projected revenues of $2.7 billion. On January 21st, CSX said that it sees shipments continuing to decline this year, but re-assured investors that the firm will be able to raise prices. Revenue for the fourth-quarter rose 4% year-over-year based principally on rail efficiencies and higher prices. Rail volumes for CSX from 2006 to 2008 went from 7.358 million to 6.827 million while revenue went from $9.6 billion to $11.3 billion in the same period. Revenue per unit went from $1,300 to $1,649 in 2006 to 2008 while operating margins increased from 20.7% to 24.6% in the same time period.

-
BNI
Burlingtn N Sante - $98.10
- +0.02%
- $98.09
Burlington Northern has traded in a 52-week range of $114.58 to $59.91 with a current price per share of $66.04. Fourth-quarter earnings jumped 19 percent as the benefit from cheaper fuel offset lower demand for shipments. Burlington Northern earned $615 million, or $1.79 per share, in the fourth quarter, compared with $517 million, or $1.46 per share, a year ago. Revenue edged up 3 percent to $4.37 billion. BNI's revenue breakdown is as follows: 32% from Intermodal, 23% from Industrial Products, 22% from Coal, 20% from Agricultural Products, and 3% from Automotive.

-
CNI
Canadian Natl Rai - $53.90
- -0.31%
- $53.87
Canadian National Railway, viewed by many as the world's leading railway. Canadian National Railway has gross margins north of 48%, which is the highest in the group, with an industry average of 30.09%. Operating margins are 35.84%, which is also the highest in group, with an industry average of 14.06%.

-
UNP
Union Pacific - $65.05
- +0.59%
- $64.54
No Analysis added

-
ARII
American Railcar - $10.30
- -2.00%
- $10.28
No Analysis added

-
CP
Canadian Pac Rail - $49.27
- +0.10%
- $48.21
No Analysis added

-
NSC
Norfolk So Cp - $51.40
- +0.94%
- $50.58
No Analysis added

-
GSH
Guangshen Rail Co - $21.26
- 0.00%
- $21.15
No Analysis added
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