Broadly speaking, these are still good times for the major railroads in the U.S. The economic recovery continues to fuel a decent recovery in volume, while the price advantages of rail versus truck give the companies leverage on pricing. It also certainly isn't hurting that higher-margin intermodal business is growing (albeit still small) part of revenue.
Against this backdrop, almost any rail would be a decent option. Looking at 2012, CSX (NYSE:CSX) may be an underappreciated relative value play among the top rails. The question for CSX is largely about whether the company can achieve cost/efficiency improvements that could drive better earnings performance than its peers. (For related reading, see Rail Traffic Ends 2011 On A High Note.)
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