5 Best Stocks For Beginners With Little Money

2. CSX Corporation (NASDAQ:CSX)

Number of Hedge Fund Holders: 63

Share Price as of October 26: $29.00

CSX Corporation (NASDAQ:CSX) is a Florida-based company that provides rail-based freight transportation services. The company transports chemicals, agricultural products, automotive, minerals, forest products, fertilizers, metals, and equipment. On October 6, CSX Corporation (NASDAQ:CSX) declared a quarterly dividend of $0.10 per share, which is payable on December 15 to shareholders of record on November 30. The company also posted market-beating Q3 2022 results, with revenue increasing on the back of higher fuel surcharge, pricing gains, a 2% boost in volumes, and an increase in storage and other revenues.

On October 24, Deutsche Bank analyst Amit Mehrotra maintained a Buy rating on CSX Corporation (NASDAQ:CSX) but lowered the price target on the shares to $36 from $41. The analyst said CSX Corporation (NASDAQ:CSX) continues to operate at a higher level than Union Pacific Corporation (NYSE:UNP), despite both companies facing increased costs from network inefficiencies.

According to Insider Monkey’s data, 63 hedge funds were long CSX Corporation (NASDAQ:CSX) at the end of June 2022, compared to 72 funds in the earlier quarter. Eric W. Mandelblatt’s Soroban Capital Partners is the largest stakeholder of the company, with 52.60 million shares worth $1.5 billion. 

Here is what ClearBridge Investments Global Infrastructure Value Strategy has to say about CSX Corporation (NYSE:CSX) in its Q4 2021 investor letter:

“On a regional basis, the U.S. and Canada were the top contributors to quarterly performance, of which U.S. rail operator CSX was among the lead performers. CSX is one of five leading North American rail companies, with over 21,000 miles of rail, covering 23 states and 40+ ports. CSX is engaged in the transportation of rail freight in the Southeast, East, and Midwest via interchange with other rail carriers, to and from the rest of the U.S. and Canada. CSX performed well during the quarter after the company beats market expectations on its third-quarter results. The beats were largely driven by strong pricing, which could be hitting record highs, and healthy commodity/coal volume driven by the current energy crisis.”