Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Five Railroad Stocks to Buy Now

While 2015 was a bad year for railroad stocks owing to the decline in coal and oil prices, some investors think the sector will benefit under the Trump administration. Most rail companies have rallied after November 8 as bulls expect the coal industry to rebound somewhat and for regulations to decrease. In this article, let’s take a closer look at some of the smart money’s favorite railroad stocks and their performance during the last quarter.

We follow over 700 hedge funds and other institutional investors and by analyzing their quarterly 13F filings, we identify stocks that they are collectively bullish on and develop investment strategies based on this data. One strategy that outperformed the market over the last year involves selecting the 100 best-performing funds and identifying the 30 mid-cap stocks that they are collectively the most bullish on. Over the past year, this strategy generated returns of 18%, topping the 8% gain registered by S&P 500 ETFs.

csx, train, appalachian, rail, winter, railway, chesapeke and ohio, power, business, coal, infrastructure, freight, countryside, energy, transport, cargo, west virginia, sd 70ac,

matthew siddons /

Canadian Pacific Railway Limited (USA) (NYSE:CP) – The number of investors tracked by Insider Monkey with long positions in Canadian Pacific Railway Limited (USA) (NYSE:CP) increased by one and the aggregate value of their holdings jumped by $98.78 million during the June-to-September period. This railroad stock was the top 13F buy of funds like Jaorge Paulo Lemann’s 3G Capital Partners and John Armitage’s Egerton Capital Limited during the third quarter. After a number of failed attempts, the company finally gave up on its plan to acquire Norfolk Southern Corp. (NYSE:NSC) in April this year. The latter commented that the merger would have drawn intense scrutiny under the then Obama administration and believed CP’s takeover bid was too low. The end of this prospective deal also came as a blow to activist investor Bill Ackman, who publicly favored the deal. Another proposal to combine with CSX Corporation (NASDAQ:CSX) was also rejected by the latter. Despite this merger drama, Canadian Pacific Railway Limited (USA) (NYSE:CP) successfully gained investor confidence after reporting upbeat Q3 earnings.

Follow Canadian Pacific Railway Ltd (NYSE:CP)
Trade (NYSE:CP) Now!

Click next to see more of the smart money’s favorite rail road picks.

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.