Wednesday, March 26, 2008

Railroad Stocks: the Little Sector That Could - US News & World Report

So how have railroads been able to largely dodge the housing-related trauma that has crippled others? First off, while railroads have indeed carried a lower volume of building materials, surging demand for commodities—such as grain and coal—has picked up the slack. "The housing slowdown has taken its toll on the railroad sector, but they are so diversified right now with what they are transporting," says David Silver, an analyst at Wall Street Strategies. "Weakness in the lumber and wood that they do for the housing is more than offset by the strength in coal...and strength in grain."

Read the full story: http://www.usnews.com/articles/business/economy/2008/03/24/railroad-stocks-the-little-sector-that-could_print.htm