Earlier this year, this industry took a big hit on concerns about the housing market, but on Thursday Union Pacific (UNP) proved the railroads can still make a lot of money moving fertilizer, coal and auto parts around this county. Here’s why you may have another chance to ride the rails.
Where the trucking industry is faltering, the rails have the opportunity to break out because of pricing power, said Guy Adami. Lots of activist investors, including Warren Buffett and Carl Icahn, are buying stakes in the rails and it never hurts to follow their lead. Guy and Karen recommended CSX (CSX) as the best in show.