Word on the Street: U.S. railroads are solid, fundamentally speaking
What’s a major factor behind the healthy transportation index? U.S. railroads, which are employing solid fundamentals, according to online news items quoting Wall Street analysts that I’ve read recently. The Dow Jones U.S. Railroads Index — which was floundering in late January — has been gaining steam as railroads continue to raise rates and boost traffic in several key sectors, including coal, metallic ores and chemicals.
Developed by Charles Dow in 1884, when railroads were the dominant transportation mode, the Dow Jones transportation index measures the activity of 20 rail, trucking, airline and freight industry stocks. The Dow Jones U.S. Railroads Index measures stock activity at BNSF Railway Co., CSX Corp., Norfolk Southern Corp. and Union Pacific Corp.
After being considered the best-performing transportation mode in 2007, railroads continue to be a pleasant surprise for investors this year, primarily because of rate increases and fuel surcharges that are helping to offset high diesel costs, analysts say.
So, keep on truckin’ railroads. Check that. Perhaps I should say, “Keep on railing.”
Posted by: 
Jeff Stagl | Date posted: 3/13/2008
Comments
Posted by James Swidergal on 3/13/2008 12:52:57 PM
Are the RR really doing that well, considering that the rest of us aren't,with recession looming,mortgages crashing and burning,fuel prices soaring,and a faultering economy,along with a down turn in employment, are the RR's the only industry where they can dictate creating their own rates, and increase them willy-nilly to keep them in the black,while the rest of us go to hell in a hand basket? All I ever wanted from the railroad was my job back.
Posted by Kenny on 3/18/2008 7:27:23 AM
the one thing about railroads that will never go away is the fact that nearly everything we need on a daily basis is delivered by rail. food, fuel, clothing, autos. and most everything else we need to survive. As long as the population of this country continues to grow so will Railway prophets. and when money is tight for the consumer, the prophet are still there for the railroads. just look at the record prophets the BNSF made in 2007. I work for the BNSF and in 2007 from my stand point we did not move as much freight across the LA to Chicago trans- route as in past years, it seem slow to me but coal grain and perishables were still moving across other regions of the BNSF that took us to record profits. Warren Buffet is no fool. Follow his lead to get rich.
Posted by Peter Cooper on 3/19/2008 9:24:30 PM
What about passenger railroads? Ridership has generally seen double digit growth. The people that ride the train have money to spend on the stuff shiped by rail. The ones that insist on wasting their money buying gas are the ones lossing their shirts.
Posted by James swidergal on 4/3/2008 9:33:14 AM
Do you mean PROFIT$ or one who sees and knows whats coming-prophet
