5 Long-Term Stock Picks of Skylands Capital

1. Union Pacific Corporation (NYSE:UNP)

Value of Skylands Capital‘s 13F Position: $57.6 million

Number of Hedge Fund Shareholders: 90

Topping the list is Union Pacific Corporation (NYSE:UNP), which ranks as Skylands Capital’s top stock pick for the 8^th straight quarter. The fund has owned shares of UNP since the final quarter of 2004, during which time they’ve gained 1,303%. Hedge fund ownership of UNP jumped by 48% during the first quarter, hitting an all-time high.

Union Pacific Corporation (NYSE:UNP)’s operating ratio landed at 60.2% during Q2, down by 510 basis points year-over-year. Operating income was up by just 1% to $2.5 billion, being impacted by rising costs and fuel prices. The company admitted that Q2 was a tough one, but believes better things lie ahead, projecting year-over-year operating ratio improvements in the second-half, along with improved volumes.

The Carillon Eagle Growth & Income Fund shared some of Union Pacific Corporation (NYSE:UNP)’s competitive advantages in its Q1 2022 investor letter:

“Union Pacific (NYSE:UNP) benefited from rising oil prices, which typically bring more demand for rail shipping as opposed to moving freight by truck. Rail transportation can be much more fuel-efficient than over-the-road trucking.”

For more of the latest stock picks worth considering for your portfolio, check out 10 Cybersecurity Stocks to Buy as US-China Tensions Mount and Cathie Wood’s Top 10 Buys in July.

Disclosure: None.

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