This post was originally published on this site
The gradual easing of COVID-19 restrictions and the resumption of economic and industrial activities have helped the railroad industry recover from its pandemic lows. Because the demand for transportation remains high amid current supply chain disruptions and rising oil prices, fuel-efficient rail and intermodal services should gain importance. Moreover, increasing investments to improve rail infrastructure bodes well for the industry. The global rail market is expected to grow at a 4.5% CAGR to $820 million in 2024. So, both CSX and CP are expected to benefit.
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. But which of these stocks is a better pick now? Let’s find out.
