Below you can find our list of the 5 best infrastructure stocks to buy now according to hedge funds. For a more comprehensive list, please see 12 best infrastructure stocks to buy now.
5. Rockwell Automation, Inc (NYSE:ROK)
No of HFs: 44
Total Value of HF Holdings: $521 Million
Rockwell Automation, Inc. provides industrial automation and information technology. During the second quarter of fiscal 2020, sales were $1,394.0 million, down 16.3 percent from $1,655.1million in the third quarter of fiscal 2019.
Amana Mutual Funds is bullish on ROK. “As its name implies, Rockwell has significant exposure to industrial automation, an arena that should provide a steadily growing market over the coming years,” the investment firm said in its Q1 letter. In an article, we mentioned what smart money thinks about Rockwell Automation, Inc.
“The largest stake in Rockwell Automation Inc. (NYSE:ROK) was held by Impax Asset Management, which reported holding $77 million worth of stock at the end of September. It was followed by Suvretta Capital Management with a $67.1 million position. Other investors bullish on the company included Nitorum Capital, GAMCO Investors, and Markel Gayner Asset Management. In terms of the portfolio weights assigned to each position Heathbridge Capital Management allocated the biggest weight to Rockwell Automation Inc. (NYSE:ROK), around 4.27% of its 13F portfolio. Bourgeon Capital is also relatively very bullish on the stock, dishing out 2.75 percent of its 13F equity portfolio to ROK.”
4. Norfolk Southern Corporation (NYSE:NSC)
No of HFs: 47
Total Value of HF Holdings: $715 Million
Norfolk Southern Corporation is one of the nation’s premier transportation companies with headquarters located in Atlanta, Georgia. The company reported a second-quarter net income of $392 million, diluted earnings per share of $1.53, and the operating ratio was 70.7 percent.
The top hedge fund holder is Ken Fisher’s Fisher Asset Management with more than $120 million invested in the stock at the end of September.
3. Kansas City Southern (NYSE:KSU)
No of HFs: 53
Total Value of HF Holdings: $1 Billion
Kansas City Southern is a Delaware-registered transportation holding company with railroad investments in the United States, Mexico, and Panama. During the second quarter of 2020, the company reported a revenue of $547.9 million.
In an article published in October, we mentioned hedge fund activity in Kansas City Southern,
“At the end of the second quarter, a total of 47 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 4% from the previous quarter. On the other hand, there were a total of 26 hedge funds with a bullish position in KSU a year ago. With hedgies’ capital changing hands, there exists an “upper tier” of noteworthy hedge fund managers who were increasing their stakes significantly (or already accumulated large positions).
When looking at the institutional investors followed by Insider Monkey, Fisher Asset Management, managed by Ken Fisher, holds the most valuable position in Kansas City Southern (NYSE:KSU). Fisher Asset Management has a $75.4 million position in the stock, comprising 0.1% of its 13F portfolio. Coming in second is Chilton Investment Company, led by Richard Chilton, holding a $70.9 million position; 2.3% of its 13F portfolio is allocated to the stock. Other members of the smart money with similar optimism include Jonathan Barrett and Paul Segal’s Luminus Management, Robert Bishop’s Impala Asset Management and Principal Global Investors’s Columbus Circle Investors. In terms of the portfolio weights assigned to each position Luminus Management allocated the biggest weight to Kansas City Southern (NYSE:KSU), around 6.84% of its 13F portfolio. Mountain Road Advisors is also relatively very bullish on the stock, dishing out 6.56 percent of its 13F equity portfolio to KSU.
As industrywide interest jumped, specific money managers were leading the bulls’ herd. Moore Global Investments, managed by Louis Bacon, established the most outsized position in Kansas City Southern (NYSE:KSU). Moore Global Investments had $19.8 million invested in the company at the end of the quarter. Jeffrey Talpins’s Element Capital Management also initiated a $1.7 million position during the quarter. The other funds with brand new KSU positions are Greg Poole’s Echo Street Capital Management, Anand Parekh’s Alyeska Investment Group, and Benjamin A. Smith’s Laurion Capital Management.”
2. CSX Corporation (NASDAQ:CSX)
No of HFs: 58
Total Value of HF Holdings: $3.2 Billion
CSX Corporation is an American holding company focused on rail transportation and real estate in North America. During the third quarter of 2020, the company announced net earnings of $736 million or $0.96 per share, versus $895 million or $1.08 per share in the same period of 2019.
The company recently announced an agreement to purchase New England’s Pan Am Railways for an undisclosed amount, pending federal review. Adding Pan Am Railways would expand CSX’s existing 23-state network.
The top hedge fund holder is Eric W. Mandelblatt’s Soroban Capital Partners with more than $895 million invested in the stock at the end of September.
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1. Union Pacific Corporation (NYSE:UNP)
No of HFs: 74
Total Value of HF Holdings: $3.9 Billion
Union Pacific Corporation is the best infrastructure stock to buy now. The company is a freight-hauling railroad that operated 8,300 locomotives over 32,300 miles. During the third quarter of 2020, the company reported operating revenue of $4.9 billion, which was down 11% compared to the same period of 2019.
Please also see, 15 Best Technology Stocks to Buy Now and Top 10 Healthcare Stocks to Buy for the future
