If you connect to the financial media, you will probably be bombed with coverage on the market rally powered by the current AI. While the technology sector receives most of the investor fanfare, this year, it is in the shoulder and neck with manufacturers. The latter displayed a gain of 14.18% for the start of the year (YTD), good for the third among the 11 sectors of the S&P 500.
Indeed, companies that manufacture machines, tools and industrial components, or are involved in the transport and logistics of shipping goods, are not as exciting as the companies involved in the rapidly evolving world of AI. For value investors, Big and Boring has not only a place in their portfolios; He plays a central role.
A large part of this pace comes from actions that are negotiated to multiple perceived or lower perceived than the market, given their multiple prices to profits (P / E). They also pay dividends which generally offer attractive yields. But in many cases, companies in the industrial sector can also provide regular growth to patient shareholders.
This is precisely the case with CSX Corp (Nasdaq :)., Which is negotiated less than 5% compared to its value of all time and transporting the value of the size of the freight to a new high record after having won more than 36% of its low YTD on April 8.
CSX: a railway growing class I of class I
Since 1980, CSX has created a 20,000-mile rail network operating in the east of the United States, Ontario and Quebec, the two most populous provinces of Canada. The market capitalization of Fortune 500 is 67.71 billion dollars, and it is a leader in the transport of rail freight in North America.
More specifically, CSX provides rail, intermodal and rail transcharge services for several industries covering energy, industrial, construction, agricultural and consumption goods.
Although the company is not known for its series acquisitions, its recent activity of mergers and acquisitions and its rumors more in fact a game of consolidation of the interesting industry. In 2021, CSX acquired quality carriers, the largest Bulk chemical transport company in North America and operating more than 100 terminals and installations in the United States, Canada and …
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