Proceedings of the 2022 International Conference on Economics, Smart Finance and Contemporary Trade (ESFCT 2022)

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Freight Railroad Corporations: Basics and Analysis of Sample Stocks

Authors
Zhichen Lou1, *
1Boston College, Chestnut Hill, USA
*Corresponding author. Email: louzd@bc.edu
Corresponding Author
Zhichen Lou
Available Online 27 December 2022.
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.

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Volume Title
Proceedings of the 2022 International Conference on Economics, Smart Finance and Contemporary Trade (ESFCT 2022)
Series
Advances in Economics, Business and Management Research
Publication Date
27 December 2022
ISBN
10.2991/978-94-6463-052-7_149
ISSN
2352-5428
DOI
10.2991/978-94-6463-052-7_149How to use a DOI?
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

risenwbib
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  -