|Railroad stocks recommended in fresh look from WSJ's Heard On The Street|
Apr. 06, 2021 7:26 AM ET Canadian Pacific Railway Limited (CP) By: Clark Schultz, SA News Editor
Railroad stocks are hot again following the Canadian Pacific (NYSE: CP)-Kansas City Southern (NYSE: KSU) merger announcement, proclaims The Wall Street Journal's Heard on the Street column.
"Recent wobbles in the complex logistical web that delivers goods across the country and the world are a reminder of how valuable their systems still are," notes the publication.
Even if the CP-KSU deal is blocked by the Surface Transportation Board, the WSJ says there are reasons to like railroads. The spread of precision-scheduled railroading is seen as a positive and trains viewed as well-placed to take advantage of global warming concerns given their far greater fuel efficiency per ton mile than trucks for intercity freight. Railroads are also called an excellent hedge against rising energy prices and shortages of truck drivers.
More railroad M&A deals are anticipated.
Railroad industry stocks: Union Pacific (NYSE: UNP), CSX Corporation (NASDAQ: CSX), Norfolk Southern (NYSE: NSC), Canadian National Railway (NYSE: CNI), Greenbrier (NYSE: GBX), FreightCar America (NASDAQ: RAIL), L.B. Foster (NASDAQ: FSTR), USD Partners (NYSE: USDP).