7 Best Transportation Stocks To Invest In Now

3. CSX Corporation (NASDAQ:CSX)

Number of Hedge Fund Holders: 65

CSX Corporation (NASDAQ:CSX) is an American holding company that focuses on rail transportation and real estate operations across North America. It was created in 1980 through the merger of Chessie System and Seaboard Coast Line Industries and has since evolved significantly over the decades.

The company’s rail network, known as CSX Transportation, spans about 20,000 route miles across 26 states, the District of Columbia, and parts of Canada, serving large population centers where nearly two-thirds of Americans reside. It also has access to over 70 port terminals along the Atlantic and Gulf Coasts, as well as connections to Pacific ports through partnerships with western railroads.

CSX (NASDAQ:CSX) is a shareholder-friendly company that has raised its dividend for the last two decades. As of September 20, the company has a dividend yield of 1.37%. This was also praised by Argus analyst John Eade, as reported by The Fly on August 19.

The analyst said that on a micro basis, the firm appreciates the company’s track record of increasing its dividend and buying back its stock. Eade maintained a Buy rating on the company stock with a $39 price target. He said that recent declines in CSX’s (NASDAQ:CSX) stock price present a good chance to buy shares. He believes that, overall, the rail industry is growing steadily compared to other transportation options.

CSX’s (NASDAQ:CSX) shares were held by 65 hedge funds in the second quarter, at a combined value of $3.5 billion. This makes the company the third best transportation stock to invest in. As of June 30, Fisher Asset Management holds the most prominent position in the company with 23.8 million shares, worth $796.1 million.

ClearBridge Investments stated the following regarding CSX Corporation (NASDAQ:CSX) in its first quarter 2024 investor letter:

“On a regional basis, the U.S. and Canada was the top contributor for quarter, with U.S. electric utility Constellation Energy and U.S. rail operator CSX Corporation (NASDAQ:CSX) the lead performers. 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.”