Five Transportation Stocks Billionaires Like

#3 Canadian Pacific Railway Limited (USA) (NYSE:CP)

– Billionaires with long positions (as of March 31): 9

– Aggregate value of billionaires’ holdings (as of March 31): $2.617 billion

Like the two stocks mentioned above, Canadian Pacific Railway Limited (USA) (NYSE:CP)’s ownership among billionaire investors covered by us remained unchanged during the first quarter. But unlike them, the aggregate value of billionaires’ holdings in the company declined during the first quarter, by $190 million. The rally in commodity prices earlier this year helped Canadian Pacific Railway Limited (USA) (NYSE:CP)’s stock to move higher till mid-April. However, the stock has given up all of those gains ever since the company reported its first-quarter results and is now trading flat for the year. The company currently pays a quarterly dividend of $040 per share, which based on its last trading price translates into an annual dividend yield of 1.40%. Earlier this month, analysts at Morgan Stanley initiated their coverage on the stock with an ‘Overweight’ rating.  Billionaire Bill Ackman‘s Pershing Square didn’t make any changes to its stake of 13.94 million shares of Canadian Pacific Railway Limited during the first quarter and continued to remain the largest shareholder of the company among funds covered by us at the end of that period.

#2 Delta Air Lines, Inc. (NYSE:DAL)

– Billionaires with long positions (as of March 31): 11

– Aggregate value of billionaires’ holdings (as of March 31): $1.35 billion

Delta Air Lines, Inc. (NYSE:DAL) is the only stock in this list that saw its ownership among billionaire investors covered by us decline during the first quarter, albeit only by one. During the same period, the aggregate value of billionaires’ holding in the company came down by $300 million. Though Delta Air Lines, Inc. (NYSE:DAL)’s stock has lost 23% of its value so far in 2016, it is still one of the best performing stock in the airline industry in the past five years, boasting a return of 327.55% during that period. On June 8, while giving a presentation at Deutsche Bank Annual Global Industrials & Materials Summit Delta Air Lines’s CFO, Paul Jacobson, revealed that the company now expects passenger revenue per available seat mile to fall 4.5% year-over-year during its fiscal 2016 second quarter versus prior guidance of a decline between 2% and 4.5%. Billionaire Cliff Asness‘ AQR Capital Management boosted its holding in Delta Air Lines by one-third to 7.32 million shares during the first quarter.

#1 Southwest Airlines Co (NYSE:LUV)

– Billionaires with long positions (as of March 31): 12

– Aggregate value of billionaires’ holdings (as of March 31): $820.59 million

Southwest Airlines Co (NYSE:LUV) emerged as the favorite transportation stock among billionaire investors covered by us during the first quarter with its ownership among them rising by three and the aggregate value of their holdings in it increasing by $72.87 million. However, there were also a few billionaire-led firms that reduced their stake in the company during that time such as Ken Griffin‘s Citadel Investment Group, which lowered its holding by 59% to 845,617 shares. Shares of the airline holding company are currently trading down by 7.27% year-to-date, but are up by 17.58% in the last 12 months. The stock currently sports an average rating of ‘Overweight’ and an average price target of $54.70 from the 17 leading analysts on the Street who cover it.

Disclosure: None