The major railroad stocks have been on a rally over the last month and CSX is due to report quarterly earnings after the closing bell. How should investors position their portfolios? Jason Seidl, director at Dahlman Rose shared his sector insights.
“What we’ve seen recently is a rebound and a lot of the volume numbers, whether it be rail or trucking, have been picking up and something’s percolating,” Seidl told CNBC. “And the impressive thing about the railroad rally is that it’s happening despite coal being negative which is usually 20-plus percent of what they usually do.”
Seidl said there has been a pick up in industrial manufacturing sector and consumer sides.
“We’re starting from a slow base but we’re seeing some pick ups from the individual commodities,” he added.
Seidl said Norfolk Southern is his "favorite" and is the “best-run U.S. railroad right now.”
“They are doing a lot of projects that are multi-year but a lot is focusing on intermodal,” he said of the firm.
Meanwhile, Seidl has “hold” ratings on Kansas City Southern and Canadian Pacific .
- Watch Seidl's Previous Appearance on CNBC (Nov. 3, 2009)
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No immediate information was available for Seidl or his firm.