Readers of this space know that one of my preferred sectors is the railroad sector. The growth in international trade, the importance of commodity transport, and record-high oil prices mean the rails will play a central role in the nation's economy. And a railroad stock worth owning is CSX Corp.

CSX Corp (NYSE: CSX) operates the largest rail network in the eastern United States, with a 22,000-mile rail network in 23 states and two Canadian provinces.

In general, analysts see 9-12% revenue growth for both 2008 and 2009, with continued pricing power (including expired contract re-pricings) and improved asset utilization.

Further, coal traffic should rebound in 2008, while intermodal traffic is expect to remain solid, even with a slowdown in the building materials and automotive businesses.

Also, several infrastructure improvements and capacity increases should improve CSX's delivery times and reduce dwell times. The Reuters F2008/F2009 EPS consensus estimates for CSX are $3.60/$4.23.

Currently trading around $68 with a p/e of 226, CSX is not cheap. But the view here is that the 3-5 year outlook is promising for this major rail line; moreover, the likelihood of persistently-high oil prices means more businesses will switch to rail transport for goods.