7 Companies to Post Big Profit Gains

The CSX (csx) railroad system serves the eastern U.S with 21,000 miles of track and has big intermodal service centers at several ports. Its biggest revenue source is hauling coal, at 30%; then intermodal traffic (containerized freight), 13%; chemicals, 14%; and a diverse mix of other goods.

Its shares are up 23% this year and 56% over the past year, giving it a market value of $29 billion. Its shares hit a 52-week high March 25.

Standard & Poor's analysts give its shares a "buy" rating and the company four out of a possible five stars. But the rating's firm's price target of $79 has since been exceeded since the report was issued.

Overall, S&P says CSX should benefit from the nation's economic recovery, "given its role in transporting many of the basic materials required in manufacturing and construction, including coal and scrap used by steel mills."

S&P expects revenue growth of about 7% in 2011, with traffic volume rising about 5%. It also predicts wider margins due to increased operating efficiencies.

For fiscal 2011, analysts tracked by S&P estimate the company will earn $5.02 per share and that will grow 16% in 2012 to $5.80 per share. Analysts' ratings are: 12 "buys," 12 "buy/holds" and eight "holds."

Capital Global Investors owns 12.4% of its shares, more than double that of the next largest investor, Fidelity.

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