5 Best Railroad Stocks To Invest In

2. Caterpillar Inc. (NYSE:CAT)

Number of Hedge Fund Holders: 45

Caterpillar Inc. (NYSE:CAT) manufactures train cars, engines, tracks, fasteners, signaling and rail welding, as well as service/repair services. Citi analyst Timothy Thein on October 31 raised the firm’s price target on Caterpillar to $235 from $180 following the third-quarter results and maintains a Neutral rating on the stock. While operating cost headwinds are expected to persist for some time, the combination of strong pricing and historically high backlogs contributes to “higher-than-normal earnings visibility in a backdrop of declining global macros,” Thein writes in a research note.

Caterpillar Inc.’s (NYSE:CAT) shares currently delivers 2.13% dividend yield as of November 10. On October 12, Caterpillar Inc. (NYSE:CAT) declared a quarterly dividend of $1.20 per share, payable on November 18 for shareholders of record as of October 24.

Caterpillar Inc. (NYSE:CAT) was recently awarded a maximum $1.28B fixed-price with economic-price-adjustment, indefinite-delivery requirements contract for construction equipment on November 3. There were three responses to this competitive acquisition. There are no option periods in this five-year contract.

According to Insider Monkey’s Q2 data, 45 hedge funds were long Caterpillar Inc. (NYSE:CAT), down from 54 funds in the prior quarter. Ken Fisher’s Fisher Asset Management is the largest shareholder of the company with 7.2 million shares worth more than $1.19 billion in total.