CSX Zooms Higher

The shares of railroad CSX Corp.'s CSX, which I first wrote about on May 1, 2009, at a price of $30.56, have zoomed higher after a summer lull, and I obviously still like the shares at this stage. Look for CSX's 2010 revenue to increase 6% to 8% in 2011, after a 15% to 17% surge in 2010. Volumes should rise 6% to 8%, and overall prices for transport services should firm, albeit with some softness in selected price categories. Any above-average U.S. or global GDP grow rates will improve CSX's performance. Further, basic materials transport, including coal and scrap, should continue to also experience healthy business gains in 2011, as will intermodal containers, and the company's increased efficiency adds to the positive story. A $1.04 annual dividend provides a cherry on top. Continue reading the article.