5 Cheap Transportation Stocks To Buy

In this article, we discuss 5 cheap transportation stocks to invest in. If you want to read our detailed discussion on the transportation industry, head over to 11 Cheap Transportation Stocks To Buy. 

5. Norfolk Southern Corporation (NYSE:NSC)

Number of Hedge Fund Holders: 51

Trailing P/E Ratio: 17.96

Norfolk Southern Corporation (NYSE:NSC) is primarily engaged in rail transportation services in the United States. The company transports a wide range of goods, including agriculture and forest products, chemicals, metals, construction materials, automotive products, and coal. It is one of the cheap transportation stocks to buy. 

On May 22, Citi analyst Christian Wetherbee upgraded Norfolk Southern Corporation (NYSE:NSC) to Buy from Neutral. The analyst believes that the transportation sector in the US will experience a positive turning point, despite the presently low sentiment and valuations. Among railway companies, Norfolk Southern Corporation (NYSE:NSC) is considered to have the most potential for growth due to anticipated service improvements and a gradual reduction of concerns related to the train derailment in East Palestine, Ohio, which occurred earlier in 2023.

According to Insider Monkey’s first quarter database, 51 hedge funds were bullish on Norfolk Southern Corporation (NYSE:NSC), compared to 43 funds in the prior quarter. Ken Griffin’s Citadel Investment Group is the largest stakeholder of the company, with 1.65 million shares worth approximately $352 million. 

The London Company Large Cap Strategy made the following comment about Norfolk Southern Corporation (NYSE:NSC) in its first quarter 2023 investor letter:

“Norfolk Southern Corporation (NYSE:NSC) – NSC was a significant underperformer this quarter reflecting weaker than expected quarterly earnings and news of a train derailment in Ohio. Fortunately, there were no fatalities related to the derailment, but there was environmental damage. Historically, the financial impact from train derailments have been relatively small and NSC’s insurance coverage could help cushion the blow. We believe NSC will emerge from this relatively unscathed, but will have to reinforce some of their network due to changes made from precision scheduled railroading efforts.”