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CSX Corp. Preferred In The Transportation Sector
Posted February 9, 2012
We Recommend...
The Street is currently bullish on transportation, rating deliver service firm United Parcel Services (UPS), railroad CSX Corp. (CSX), and Southwest Airlines (LUV) a "buy" or better. CSX is most preferred with a near "strong buy" rating - a sentiment that I share upon reviewing the fundamentals. Southwest - in more ways than one - faces the most headwinds with uncertainty over integration, labor, and margins.
From a multiples perspective, UPS and CSX are both trading under their 5-year average PE multiples. UPS trades at a respective 18.1x and 14.1x past and forward earnings while CSX trades at a respective 13.3x and 10.2x past and forward earnings. UPS offers the highest dividend yield at 2.7% with the lowest beta at 20% less volatility than the broader market. READ FULL ARTICLE HERE
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