Tuesday, January 19, 2010

Railroad stocks recover faster than Dow Jones average

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New proof of the railroad industry's investor appeal came Tuesday with the report that the Dow Jones Railroad Index has improved around 76% since its low point in March 2009, easily exceeding the 50% gain posted during the same time by the Dow Jones Industrial Average.

The comparison appears in a chart published in the Wall Street Journal, a Dow Jones newspaper, and it comes with a note of caution: While "the improving economy likely helped railroad companies deliver better fourth-quarter results ... there's been a recent slowdown in rail demand."

CSX will report is third-quarter results Wednesday, and the Thompson Reuters analyst poll expects the railroad to post its third consecutive quarterly increase in earnings.