Skylands Capital Likes Apple In Q4, But Likes These Two Stocks More

#3 Apple Inc. (NASDAQ:AAPL)

Shares Owned by Skylands Capital (as of September 30): 329,765 shares

Value of Holding (as of September 30): $36.37 million

It is not entirely clear whether Skylands Capital lost some confidence in Apple Inc. (NASDAQ:AAPL) or the 5,900-share block reduction in its position during the third quarter was part of the firm’s re-balancing process, but the tech giant gained one spot on the aforementioned list of the firm’s top stock picks. It seems that the iPhone maker has proven once again that it is capable of delivering exorbitant growth despite facing numerous headwinds such as the strong U.S dollar and high reliance on its iPhone sales. It is also hard to ignore that Apple’s shares are currently trading at a forward P/E ratio of 12.32, when the median for the S&P 500 stands at 18.41. Only time will tell whether the worries about Apple’s high reliance on iPhone sales turn out to be valid. Carl Icahn of Icahn Capital LP, who owns 52.76 million shares of Apple Inc. (NASDAQ:AAPL) as of June 30, recently asserted that the stock was worth $240 per share.

#2 Crown Castle International Corp (NYSE:CCI)

Shares Owned by Skylands Capital (as of September 30): 668,450 shares

Value of Holding (as of September 30): $52.72 million

Skylands Capital’s position in Crown Castle International Corp (NYSE:CCI) stood at 668,450 shares at the end of the third quarter, down by 18,075 shares quarter-over-quarter. The freshly-disclosed position represents 5.92% of the investment firm’s portfolio as of September 30. The provider of wireless infrastructure reported site rental revenues that topped the high-end of its third quarter outlook and also increased the mid-point of its full-year guidance for site rental revenues. Similarly, the company announced an increase in its annual dividend to $3.54 per share of common stock from $3.28. Meanwhile, the stock has advanced by nearly 13% since the beginning of the year, and may go higher in the months ahead if the company succeeds in strengthening its leadership position in the wireless infrastructure industry. Andreas Halvorsen’s Viking Global was one of the top equity holders of Crown Castle International Corp (NYSE:CCI) at the end of the June quarter, with 5.53 million shares.

#1 Union Pacific Corporation (NYSE:UNP)

Shares Owned by Skylands Capital (as of September 30): 791,950 shares

Value of Holding (as of September 30): $70.02 million

Union Pacific Corporation (NYSE:UNP) retained its spot on the top of Skylands Capital’s equity portfolio, even though the Milwaukee-based firm decreased its position in the company by 36,150 shares during the third quarter. The 791,950-share stake accounts for 9.42% of the fund’s portfolio as of September 30. The U.S operator of railroads has been experiencing several headwinds over the past few months, including a decline in coal shipments. Energy prices, consumer sentiment, grain markets and the future of the U.S dollar represent major forces that will influence the company’s business in the upcoming year. The shares of the company are down by 24% year-to-date, but the strengthening U.S economy might put Union Pacific Corporation back on track. Cliff Asness’ AQR Capital Management was another top shareholder of Union Pacific Corporation (NYSE:UNP) at the end of the second quarter, owning 1.37 million shares.

Disclosure: None