Freight Railroad Corporations: Basics and Analysis of Sample Stocks
- DOI
- 10.2991/978-94-6463-052-7_149How to use a DOI?
- Keywords
- Rail Industry; Capital Asset Pricing Model; Risk; Investment; Transportation
- Abstract
This paper chose to focus on the industry of freight railroad corporations in the United States because of their particular relevance in the age of online shopping and their steady performance during & after the pandemic. This paper introduces the basics of the United States freight railroad and the moat of this industry. The freight transportation industry covaries strongly with the overall economy, showing stable long-run growth potential and a relatively low risk. The second half of the paper analyzed the stocks of Union Pacific, CSX and Norfolk Southern via key performances index, including current ratio, earning per share, return on equity, etc. Using Union Pacific as an example, this paper calculated the Weight Average Cost of Capital (WACC) by applying the Capital Asset Pricing Model. Overall, freight railroad companies are a good choice to be a part of investment portfolio for its stable return and low risk.
- Copyright
- © 2022 The Author(s)
- Open Access
- Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.
Cite this article
TY - CONF AU - Zhichen Lou PY - 2022 DA - 2022/12/27 TI - Freight Railroad Corporations: Basics and Analysis of Sample Stocks BT - Proceedings of the 2022 International Conference on Economics, Smart Finance and Contemporary Trade (ESFCT 2022) PB - Atlantis Press SP - 1344 EP - 1349 SN - 2352-5428 UR - https://doi.org/10.2991/978-94-6463-052-7_149 DO - 10.2991/978-94-6463-052-7_149 ID - Lou2022 ER -