11 Best Freight Stocks To Buy Now

2. CSX Corporation (NYSE:CSX)

Number of Hedge Fund Holders: 70

CSX Corporation (NYSE:CSX) is one of the best freight stocks to buy now. The company is focused on rail, intermodal, and rail-to-truck transload services. CSX Corporation’s (NYSE:CSX) strengths lie in its high coal export volumes. In 2023, the coal volumes expanded by 3% and the company expects coal volumes to increase by 1.6% in the second quarter of 2024.

CSX Corporation (NYSE:CSX), was spotted on 70 investors’ portfolios at the end of Q1 2024. These funds disclosed collective stakes worth $3.83 billion in the company. As of March 31, Eric W. Mandelblatt’s Soroban Capital Partners is the most prominent shareholder in the company and has disclosed a position worth $1.04 billion.

On April 17, CSX Corporation (NYSE:CSX) reported strong earnings for the fiscal first quarter of 2024. The company generated a revenue of $3.68 billion, ahead of market consensus by $14.85 million. The company also reported EPS worth $0.46, beating estimates by $0.01. Analysts polled by Yahoo Finance expect the company’s earnings to grow by 4.86% in 2024 and 17.84% by 2025. Wall Street analysts hold a consensus buy opinion on the stock. Based on the price targets of 27 analysts, the stock’s median forecast of $39.78 represents an upside of 20.99% from its current level of $32.88.

The company also holds a strong financial position, with cash and cash equivalents worth $1.48 billion, as of March 31, 2024. In February, the company increased its quarterly dividend by 9.1% to $0.12 per share. CSX Corporation (NYSE:CSX) also distributed $500 million to shareholders through share repurchases and dividends in the first quarter of 2024.

While the company is still dealing with high coal costs and tough port situations, the company expects its profits to increase over time as it works to convert freight off the highway and maintain a strong asset portfolio. Analysts expect the company to grow its earnings by 5.15% this year and 10.90% over the next five years.