Railroad Stocks Look Attractive Now: Pro

The railroad sector is looking like an attractive investment, said Jason Seidl, director of Dahlman Rose & Co.

“We’re very poor in infrastructure right now…We don’t even have maintenance capital in our road systems, so we need more rails going forward,” Seidl told CNBC.

Seidl said export coal and the intermodal volumes will help boost eastern railroads. He has "buy" or "hold" ratings on most rail stocks. Intermodal shipping involves shifting containers from one means of transport to another; for example, lifting a cargo container from a ship on the Pacific coast and dropping it onto a railcar in port for transport eastward.

“The "hold"[-rated stocks] right now have some appreciation in them and the "buys" that we’ve been pushing are the eastern railroads."

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Scorecard—What He Said:

• Seidl's Previous Appearance on CNBC (Nov. 30, 2010)

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More Market Intelligence:

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CNBC Data Pages:

• Dow 30 Stocks—In Real Time
• Oil, Gold, Natural Gas Prices Now
• Where's the US Dollar Today?

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CNBC Slideshows:

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Top Railroad Companies:

Norfolk Southern

CSX

Union Pacific Corporation

Kansas City Southern

RailAmerica

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Disclosures:

Seidl does not own shares of CNI, CP, CSX, GWR, KSU, NSC, RA, UNP.

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Disclaimer