5 Best Railroad Stocks To Buy Now

In this article, we discuss 5 best railroad stocks to buy now. If you want to skip our detailed analysis of the railroad industry, head directly to 11 Best Railroad Stocks To Buy Now. 

5. Canadian Pacific Kansas City Limited (NYSE:CP)

Number of Hedge Fund Holders: 48

Canadian Pacific Kansas City Limited (NYSE:CP) owns and manages a transcontinental freight railway in Canada and the United States, transporting bulk commodities and merchandise freight. It is one of the best railroad stocks to buy now. On April 26, Canadian Pacific Kansas City Limited (NYSE:CP) declared a C$0.19 per share quarterly dividend, in line with previous. The dividend is distributable on July 31, to shareholders of record as of June 30. 

According to Insider Monkey’s first quarter database, 48 hedge funds were bullish on Canadian Pacific Kansas City Limited (NYSE:CP), compared to 49 funds in the earlier quarter. Chris Hohn’s TCI Fund Management is the biggest stakeholder of the company, with 55.8 million shares worth $4.3 billion. 

Artisan Focus Fund made the following comment about Canadian Pacific Kansas City Limited (NYSE:CP) in its first quarter 2023 investor letter:

“We’ve held a large position in Canadian Pacific Kansas City Limited (NYSE:CP) for more than a year. During the quarter, Canadian Pacific completed the acquisition of the Kansas City Southern Railroad. This outcome, to us, was a best case scenario. Despite considerable fears leading up to the close, the transaction resulted in no divestitures, concessions or track usage/interchange limitations in any key regions. This was exciting, and we see a very compelling setup for the next two years. Canadian Pacific has a best-in-class management team, now running the only truly end-to-end railroad network that can stretch across the high growth west coast Canadian ports down into lower Mexico. We think both areas are key beneficiaries of our De-Globalization theme. While the merits of the deal are slowly becoming apparent, we still think the scope of the upside is underappreciated. We expect accelerating growth from here in the form of new customer acquisition and share gains by existing customers. The deal itself is particularly unique as our analysis points to essentially no cannibalization or overlapping of existing routes.”