5 Best Railroad Stocks to Invest In

2. CSX Corporation (NASDAQ:CSX)

Number of Hedge Fund Holders: 72

CSX Corporation (NASDAQ:CSX) is a rail freight transportation services provider. It focuses its efforts on providing freight transportation, transports products via railroad, and offers other complimentary services such as transferring products from rail to trucks. The company is headquartered in Jacksonville, Florida, United States.

In another example of the ongoing consolidation in the railroad industry, CSX Corporation (NASDAQ:CSX) announced in June 2022 that it had acquired the railroad company Pan Am Railways, enabling CSX Corporation (NASDAQ:CSX) to expand its presence in the Northeastern United States.

As its fiscal first quarter came to an end, CSX Corporation (NASDAQ:CSX) reported that it had earned $3 billion in revenue and $0.39 in GAAP EPS, beating analyst estimates for both metrics. Insider Monkey took a look at 912 hedge fund portfolios for the first quarter of this year to discover that 72 had invested in the company.

The Pan Am acquisition gives CSX Corporation (NASDAQ:CSX) a unique strategic advantage. It allows the company to gain a larger share of the U.S. commodities shipping market, which is crucial given the current environment.

Eric W. Mandelblatt’s Soroban Capital Partners is CSX Corporation (NASDAQ:CSX)’s largest investor. It owns 40.9 million shares that are worth $1.5 billion.