10 Best NASDAQ Stocks Under $50 to Buy

2. CSX Corporation (NASDAQ:CSX)

Number of Hedge Fund Holders In Q2 2024: 65

Share Price: $33.90

CSX Corporation (NASDAQ:CSX) is one of the biggest railroad transportation providers in America with a 20,000 route mile network and an operation spanning across 26 states. This provides the firm with key market and cost advantages as the firm is able to command significant volumes across its network. CSX Corporation (NASDAQ:CSX)’s role as an industrial goods transporter also means that the firm does well when industrial output is high. As a result, it’s unsurprising that CSX Corporation (NASDAQ:CSX)’s shares are down 2% year to date, especially since it’s dealing with railroad strikes. While economic activity has a part to play in this performance, other factors such as declining truck rates and union deals have also made their mark. As it faces stiff competition from truckers that eats into margins, CSX Corporation (NASDAQ:CSX) has also agreed to a 3.5% annual wage increase for employees for the next five years. On a positive note, the stock gained 2.5% after the Fed’s rate cut and CSX Corporation (NASDAQ:CSX)  is also working with its industrial partners for infrastructure projects that could increase volume over the long term.

ClearBridge Investments mentioned CSX Corporation (NASDAQ:CSX) in its Q1 2024 investor letter. Here is what the firm said:

“CSX runs the second-largest listed U.S.-centric railroad in terms of market cap, owning over 20,000 miles of track and operating across 23 states mostly on the East Coast. CSX was an outperformer as quarterly results demonstrated best-in-class adjusted operating margins combined with continued volume recovery, which has surpassed expectations.”