Hot Transportation Companies To Own For 2014

Union Pacific (NYSE: UNP  ) and CSX (NYSE: CSX  ) are selections for the real-money Inflation-Protected Income Growth portfolio. Like any investments, they need to be reviewed from time to time to see if� they're still worth owning. In the brief video below, portfolio manager Chuck Saletta reviews their valuations, balance sheets, and dividends and decides whether to hold on to the stocks or let them go.

To follow the iPIG portfolio as buy and sell decisions are made, watch Chuck's article feed by clicking here. To join The Motley Fool's free discussion board dedicated to the iPIG portfolio, simply click here. For more information on the Graham Equation used for the valuation estimates, see the article at this link.

For more on iPIG portfolio selection CSX
With 21,000 miles of track serving two-thirds of the U.S. population, CSX maintains a valuable proprietary asset. Still, this railroad will face difficult obstacles in the years ahead due to a domestic surplus of natural gas and coal's declining popularity. To help investors better understand how CSX can deal with these challenges, The Motley Fool has released a brand-new premium research report authored by Isaac Pino, Industrials Bureau Chief and transportation expert. Isaac provides an in-depth look at CSX's competitive advantages, risk areas, and prospects for the future. Simply click here now to access your copy of this invaluable investor's resource.

Hot Transportation Companies To Own For 2014: Rhino Resource Partners LP(RNO)

Rhino Resource Partners LP produces, processes, and sells coal of various steam and metallurgical grades in the United States. The company holds interests in various surface and underground coal mines located in Central Appalachia, Northern Appalachia, the Illinois Basin, and the Western Bituminous region. As of December 31, 2010, it operated 10 mines, including 5 underground and 5 surface mines located in Kentucky, Ohio, and West Virginia. The company markets its steam coal primarily to electric utility companies as fuel for their steam-powered generators; and metallurgical coal for steel and coke producers. It also engages in mining limestone from reserves located at its Sands Hill mining complex and sells it as aggregate to various construction companies and road builders. The company was founded in 2003 and is based in Lexington, Kentucky.

Hot Transportation Companies To Own For 2014: China Metro-Rural Holdings Limited(CNR)

China Metro-Rural Holdings Limited, through its subsidiaries, primarily engages in the development and operation of agricultural logistics and trade centers in northeast China. It also involves in purchasing, processing, assembling, merchandising, and distributing pearls and jewelry products. The company markets its pearls and jewelry products to wholesale distributors and mass merchandisers in Europe, the United States, Hong Kong, and other parts of Asia. In addition, it develops, sells, and leases residential and commercial properties in Hong Kong and the People?s Republic of China. The company is based in Tsimshatsui, Hong Kong.

Advisors' Opinion:

• [By Wyatt Research Staff]

  The stock moved significantly higher in mid-January and traded in a fairly tight range ever since. However, that could change soon. China's agricultural exports to Japan will grow if radiation continues to seep into the food chain.

  China exported $593 million worth of agricultural goods to Japan last year.

Top Blue Chip Companies To Own For 2014: Union Pacific Corporation(UNP)

Union Pacific Corporation, through its subsidiary, Union Pacific Railroad Company, provides rail transportation services in North America. It has approximately 31,953 route miles linking Pacific Coast and Gulf Coast ports with the Midwest and eastern United States gateways, and provides several corridors to Mexican gateways. The company offers freight transportation services for agricultural products, including whole grains and related commodities, food, beverage products, corn for ethanol products and its by-products, animal feeds, fruits and vegetables, frozen meat, and poultry products; and automotive products, such as imported and finished vehicles, and automotive parts and materials. It also provides transportation services for chemicals, such as industrial chemicals, plastics, and liquid petroleum products; energy products comprising coal and coke; industrial products, including lumber products, paper and consumer goods, furniture and appliances, and nonferrous and i ndustrial minerals, as well as steel and construction products, such as rock, cement, and roofing materials; and intermodal containers. Union Pacific Corporation was founded in 1862 and is based in Omaha, Nebraska.

Advisors' Opinion:

• [By Richard Young]

  Union Pacific (NYSE:UNP) has paid a dividend on its shares every year for 112 years. On Nov. 17, Union Pacific’s board announced a dividend increase of 26%. That was the second dividend increase of 2011, raising the quarterly dividend to 60 cents a share, up from 38 cents at the beginning of the year. Union Pacific is aiming to pay out more.

   

  Take a look at the long record of outperformance on my relative strength chart for UNP. Over the last five years, UNP has outperformed the S&P by over 150%.

• [By Jonas Elmerraji]

  2013 has been a strong year for shares of Union Pacific (UNP). Shares of the $70 billion railroad stock have rallied almost 19% this year, buoyed by overall strength in the transports sector. UNP is the largest railroad on the continent, with more than 32,000 miles of track that links 23 states, Canada and Mexico. That scale puts the firm in a strong position to grab more freight volume as the economy warms up.

  While oil prices have dipped recently, they're still on the high end of their historic range, and that actually bodes well for railroads. In general, rail shipping costs around one-fourth as much as trucking does per ton shipped, a cost advantage that typically sends customers setting aside the convenience factor of truck freight once fuel prices get past a certain point. The firm's hefty commodity exposure is a little less attractive right now, but that hasn't stopped Union Pacific from posting impressive revenue numbers lately.

  UNP has a deep economic moat. Railroad assets aren't easily copied by rivals – and they're extremely costly to maintain. While that does mean that UNP has some hefty fixed costs to overcome, its scale easily makes up for that drawback. With much better efficiency than the firm had just a couple of years ago, Union Pacific looks well positioned for 2013. We're betting on shares of this Rocket Stock this week.

• [By Rebecca Lipman]

   Through its subsidiary it provides rail transportation services in North America. Market cap of $48.89B. EPS growth (5-year CAGR) at 17%. According to Morgan Stanley: "We are bullish on the rail industry's advantage over its truck competitors including lower unit costs for high tonnage freight and greater customer captivity."

Hot Transportation Companies To Own For 2014: J.B. Hunt Transport Services Inc.(JBHT)

J.B. Hunt Transport Services, Inc., together with its subsidiaries, operates as a surface transportation, delivery, and logistics company in North America. It operates in four segments: Intermodal (JBI), Dedicated Contract Services (DCS), Full-Load Dry-Van (JBT), and Integrated Capacity Solutions (ICS). The JBI segment provides intermodal freight solutions, including origin and destination pickup and delivery services in the continental United States, Canada, and Mexico. This segment operates 45,666 pieces of company-controlled trailing equipment; and manages a fleet of 2,592 company-owned tractors. The DCS segment involves in the design, development, and execution of supply chain solutions, which support various transportation networks. This segment offers final mile delivery, replenishment, and specialized services supporting private fleet conversion, fleet creation, and transportation system augmentation. As of December 31, 2010, it operated 4,259 company-owned trucks, 357 customer-owned trucks, and 23 independent contractor trucks. The JBT segment provides full-load, dry-van freight services by utilizing tractors operating over roads and highways. It operated 1,697 company-owned tractors. The ICS segment provides non-asset, asset-light, and transportation logistics solutions. It offers flatbed, refrigerated, expedited, and less-than-truckload, as well as various dry-van and intermodal solutions. The company transports a range of freight, including general merchandise, specialty consumer items, appliances, forest and paper products, building materials, soaps and cosmetics, automotive parts, electronics, and chemicals. J.B. Hunt Transport Services, Inc. was founded in 1961 and is headquartered in Lowell, Arkansas.