Rising demand for cost-efficient transportation amid supply chain disruptions, and increasing government investments to improve rail infrastructure, should drive the railroad industry’s growth. We think the most prominent player in this sector, CSX, (CSX), is the right choice. Canadian Pacific The Railway (NYSE 🙂 is a great option. Which stock is better to buy right now? Learn more. CSX Corporation, NASDAQ:), in Jacksonville Fla., Canada and Canadian Pacific Railway Limited (CP) are prominent railway players. CSX is a global provider of rail, intermodal and domestic container shipping as well contract logistics services. It transports chemicals, minerals, agricultural and food products, coal, coke, and iron ore to electricity-generating power plants, steel manufacturers, industrial plants, and exports coal to deep-water port facilities. CP, a Class 1 transcontinental railroad that offers freight and intermodal service over a network of stations in Canada and the United States. The railroad transports merchandise and bulk cargo, as well as intermodal traffic, which includes retail goods from overseas containers.
Railroad industry has recovered from the pandemic lows by gradually easing COVID-19 regulations and resuming economic and industrial activity. Due to the high demand for transport despite supply disruptions and rising prices of oil, it is important that fuel-efficient rail and intermodal service be given more importance. The sector will also benefit from increasing investment in improving rail infrastructure. Global rail markets are expected to expand at 4.5% annually to $820 millions in 2024. Both CSX (and CP) are likely to reap the benefits.
While CP’s shares have gained 3.6% in price over the past three months, CSX surged 8.5%. CSX is a clear winner with 23.3% gains versus CP’s 10.4% returns in terms of their past nine months’ performance. Which stock is better? Let’s find out.
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