Stifel, Nicolaus & Co. Analyst John Larkin says investors have been negative about railroads lately because of decreased grain and coal volumes. He says that is creating a buying opportunity for some stocks like Genesee & Wyoming Inc (GWR).
“The railroads are cheaper relative to their own valuation histories and relative to the broader market indices than they have been in quite some time,” Larkin says.
FOR MORE INFORMATION ON THIS INTERVIEW CLICK HERE.
Larkin says Genesee & Wyoming has been “slaughtered of late,” partly because of the iron ore mines that closed in Australia due to decreased demand from China. But, Larkin still has a “buy” rating on the stock.
“We continue to believe that Genesee & Wyoming is a very high-quality company that hasn’t been this inexpensive in a number of years,” he says.
Wells Fargo & Co (NYSE:WFC) Scandal Creates Huge Buying Opportunity
November 15, 2016