#1 - CSX Corp. (NASDAQ:CSX)
Railroads are sensitive to macroeconomic pressures. So, one strategy for investing in railroad stocks is to buy companies that hold a leadership position. CSX Corp. (NASDAQ:CSX) has over 26,000 miles of track across 23 states, in addition to the District of Columbia and two Canadian provinces. The company operates primarily along the east coast and the southeastern United States. This makes CSX one of the two largest Class 1 railroads in the industry.
In 2021, CSX acquired a trucking division. Quality Carriers that specialize in the transportation of bulk liquid chemicals. This allows the company to provide comprehensive transportation services to customers.
In the first two quarters of 2022, CSX is posting a year-over-year increase in revenue and profits. This is despite the fact that the volume of coal they transport (which makes up 13% of revenue) has decreased significantly in the last decade.
CSX doesn’t pay the most robust dividend in the sector. It has, however, increased its dividend for each of the last 17 years and has a sustainable 22% payout ratio.
About CSX
CSX Corporation, together with its subsidiaries, provides rail-based freight transportation services. The company offers rail services; and transportation of intermodal containers and trailers, as well as other transportation services, such as rail-to-truck transfers and bulk commodity operations. It also transports chemicals, agricultural and food products, minerals, automotive, forest products, fertilizers, and metals and equipment; and coal, coke, and iron ore to electricity-generating power plants, steel manufacturers, and industrial plants, as well as exports coal to deep-water port facilities.
Read More - Current Price
- $32.75
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 12 Buy Ratings, 5 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $37.82 (15.5% Upside)
