In this article, we discuss 5 Best Railroad Stocks To Invest In. If you want to see more selected railroad stocks with detailed analysis, go directly to 10 Best Railroad Stocks To Invest In.
5. GATX Corporation (NYSE:GATX)
Number of Hedge Fund Holders: 17
GATX Corporation (NYSE:GATX) is a railcar leasing company that operates in the United States and around the world. Rail North America, Rail International, and Portfolio Management are the company’s three segments. GATX Corporation’s (NYSE:GATX) shares currently deliver a quarterly dividend of $0.52 per share and have a dividend yield of 2.13% as of October 25.
Susquehanna analyst Bascome Majors on July 22 reduced his price target on GATX Corporation (NYSE:GATX) from $122 to $112 and maintained a Positive rating on the stock. According to the analyst, the company has significant pricing power due to a limited supply of railcars and high global new car prices.
Among the hedge funds tracked by Insider Monkey, 17 were long GATX Corporation (NYSE:GATX) as of Q2, an increase from 14 funds from the previous quarter. Mario Gabelli’s GAMCO Investors is the largest shareholder of the company with over 1.6 million shares worth more than $150 million.
4. Union Pacific Corporation (NYSE:UNP)
Number of Hedge Fund Holders: 65
Union Pacific Corporation (NYSE:UNP) operates in the railroad business in the United States through its subsidiary, Union Pacific Railroad Company. Union Pacific Corporation (NYSE:UNP) on July 28 declared a quarterly dividend of $1.30 per share, in line with previous. Payable on September 30 for shareholders of record as of August 31.
On October 24, Amit Mehrotra of Deutsche Bank reduced their price target on Union Pacific Corporation (NYSE:UNP) to $216 from $232 and maintained a Buy rating on the stock. According to the analyst, CSX continues to perform better than Union Pacific despite both companies incurring higher costs due to network inefficiencies.
According to Insider Monkey’s Q2 data, 65 hedge funds were bullish on Union Pacific Corporation (NYSE:UNP), down from 89 funds in the preceding quarter. Thomas Bailard’s Bailard Inc currently owns the largest position in the company as of Q3 with 46,381 shares worth $9.03 million.
3. Trinity Industries, Inc. (NYSE:TRN)
Number of Hedge Fund Holders: 18
Trinity Industries, Inc. (NYSE:TRN) offers rail transportation products and services in North America under the TrinityRail brand. It is divided into two divisions: Railcar Leasing and Management Services Group and Rail Products Group. Trinity Industries, Inc.’s (NYSE:TRN) stocks currently delivers a quarterly dividend of $0.23 per share and has a dividend yield of 3.74% as of October 25.
On July 28, Wells Fargo analyst Allison Poliniak-Cusic reduced her price target on Trinity Industries, Inc. (NYSE:TRN) to $33 from $38 and maintained the stock’s Overweight rating. According to the analyst, Q2 results were below expectations. According to her, the results are still reflective of an early railcar build cycle combined with macro pressures, as Trinity continues to face component procurement challenges.
Insider Monkey’s Q2 hedge fund data reveals 18 funds were long Trinity Industries, Inc. (NYSE:TRN), up from 16 funds from the previous quarter. Mario Gabelli’s GAMCO Investors is the largest position holder of the company with 1.06 million shares worth about $25 million.
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.
1. USD Partners LP (NYSE:USDP)
Number of Hedge Fund Holders: 1
USD Partners LP (NYSE:USDP) acquires, develops, and operates midstream infrastructure assets and logistics solutions in the United States and Canada for crude oil, biofuels, and other energy-related products. Terminalling Services and Fleet Services are the two business segments of the company.
On October 25, USD Partners LP (NYSE:USDP) declared a quarterly dividend of $0.1235 per share. Payable on November 14 for shareholders of record as of November 2. USD Partners LP’s (NYSE:USDP) currently has 10.29% dividend yield.
Among the hedge funds tracked by Insider Monkey, 1 fund holds USD Partners LP (NYSE:USDP) as of Q2, in line with previous. Emanuel J. Friedman’s EJF Capital is the only stakeholder of the company with 25,000 shares worth more than $130,000.
You can also take a look at 15 Stocks That Will Double in 2023 and Charlie Munger Stock Portfolio.
