5 Best Railroad Stocks to Buy in 2021

3. CSX Corporation (NASDAQ: CSX)

Market Cap: $76.906 billion
Number of Hedge Fund Holders: 58

CSX Corporation (NASDAQ: CSX) provides freight transportation via rail as well as rail-to-truck transfers and bulk commodity operations. The company also provides intermodal transportation services through a vast network of 30 terminals. CSX Corporation (NASDAQ: CSX) currently operates a rail network of 19,500 route miles. It was founded in 1978 and is based in Jacksonville, Florida.

The company recently announced that it has signed an agreement to acquire Quality Carriers, Inc. which is the largest provider of bulk liquid chemicals truck transportation in North America. CSX’s recent quarterly earnings report showed that the company’s earnings per share decreased 7% year-over-year to $0.93 in the first quarter of 2021. The total revenue in 2020 was reported to be $10.5 billion from $11.9 billion in 2019. Although the company’s revenue declined by 1%, CSX is expecting their profit for fiscal year 2021 to grow by 39% as the company has managed to increase their velocity by more than 30% and has created excess capacity to limit how long fluid trains sit idle. On May 7, 2021, the Board of Directors of CSX approved a $0.28 per share quarterly dividend on the company’s common stock which is payable on June 15, 2021. The future of the company seems bright with a higher cash flow on the cards for CSX making it one of the best railroad stocks to buy in 2021.