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Best Railroad Stocks to Buy Now (2023)

Top railroad stocks in 2023 ranked by overall Zen Score. See the best railroad stocks to buy now, according to analyst forecasts for the railroads industry.

According to Zen Score, the 3 best railroad stocks to buy right now are:

Csx (NASDAQ:CSX) is the top railroad stock with a Zen Score of 48, which is 18 points higher than the railroad industry average of 30. It passed 18 out of 38 due diligence checks and has strong fundamentals. Csx has seen its stock lose -10.37% over the past year, underperforming other railroad stocks by -3 percentage points.

Csx has an average 1 year price target of $34.42, an upside of 14.43% from Csx's current stock price of $30.08.

Csx stock has a consensus Buy recommendation according to Wall Street analysts. Of the 19 analysts covering Csx, 36.84% have issued a Strong Buy rating, 15.79% have issued a Buy, 42.11% have issued a hold, while 0% have issued a Sell rating, and 5.26% have issued a Strong Sell.

Norfolk Southern (NYSE:NSC) is the second best railroad stock with a Zen Score of 47, which is 17 points higher than the railroad industry average of 30. It passed 17 out of 38 due diligence checks and has strong fundamentals. Norfolk Southern has seen its stock lose -11.47% over the past year, underperforming other railroad stocks by -4 percentage points.

Norfolk Southern has an average 1 year price target of $246.89, an upside of 3.38% from Norfolk Southern's current stock price of $238.81.

Norfolk Southern stock has a consensus Buy recommendation according to Wall Street analysts. Of the 19 analysts covering Norfolk Southern, 21.05% have issued a Strong Buy rating, 15.79% have issued a Buy, 57.89% have issued a hold, while 0% have issued a Sell rating, and 5.26% have issued a Strong Sell.

Westinghouse Air Brake Technologies (NYSE:WAB) is the third best railroad stock with a Zen Score of 45, which is 15 points higher than the railroad industry average of 30. It passed 16 out of 38 due diligence checks and has strong fundamentals. Westinghouse Air Brake Technologies has seen its stock return 18.12% over the past year, overperforming other railroad stocks by 26 percentage points.

Westinghouse Air Brake Technologies has an average 1 year price target of $103.80, an upside of 0.65% from Westinghouse Air Brake Technologies's current stock price of $103.13.

Westinghouse Air Brake Technologies stock has a consensus Buy recommendation according to Wall Street analysts. Of the 6 analysts covering Westinghouse Air Brake Technologies, 33.33% have issued a Strong Buy rating, 16.67% have issued a Buy, 50% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Out of 9 railroad stocks that have issued dividends in the past year, the 3 railroad stocks with the highest dividend yields are:

Usd Partners (NYSE:USDP) has an annual dividend yield of 12.51%, which is 9 percentage points higher than the railroad industry average of 3.2%. Usd Partners's dividend payout is not stable, having dropped more than 10% one times in the last 10 years. Usd Partners's dividend has not shown consistent growth over the last 10 years.

Usd Partners's dividend payout ratio of -32.3% indicates that its high dividend yield might not be sustainable for the long-term.

Greenbrier Companies (NYSE:GBX) has an annual dividend yield of 3.65%, which is the same as the railroad industry average of 3.2%. Greenbrier Companies's dividend payout is stable, having never dropped by more than 10% in the last 10 years. Greenbrier Companies's dividend has shown consistent growth over the last 10 years.

Greenbrier Companies's dividend payout ratio of 180% indicates that its dividend yield might not be sustainable for the long-term.

Trinity Industries (NYSE:TRN) has an annual dividend yield of 3.36%, which is the same as the railroad industry average of 3.2%. Trinity Industries's dividend payout is stable, having never dropped by more than 10% in the last 10 years. Trinity Industries's dividend has shown consistent growth over the last 10 years.

Trinity Industries's dividend payout ratio of 54.8% indicates that its dividend yield is sustainable for the long-term.

Railroad stocks were down -0.16% in the last day, and down -3.05% over the last week.

We couldn't find a catalyst for why railroad stocks are down.

Based on WallStreetZen's Valuation Score, the 3 most undervalued railroad stocks right now are:

Csx (NASDAQ:CSX) is the most undervalued railroad stock based on WallStreetZen's Valuation Score. Csx has a valuation score of 43, which is 19 points higher than the railroad industry average of 24. It passed 3 out of 7 valuation due diligence checks.

Csx's stock has dropped -10.37% in the past year. It has underperformed other stocks in the railroad industry by -3 percentage points.

Trinity Industries (NYSE:TRN) is the second most undervalued railroad stock based on WallStreetZen's Valuation Score. Trinity Industries has a valuation score of 43, which is 19 points higher than the railroad industry average of 24. It passed 3 out of 7 valuation due diligence checks.

Trinity Industries's stock has gained 0.68% in the past year. It has overperformed other stocks in the railroad industry by 8 percentage points.

Norfolk Southern (NYSE:NSC) is the third most undervalued railroad stock based on WallStreetZen's Valuation Score. Norfolk Southern has a valuation score of 43, which is 19 points higher than the railroad industry average of 24. It passed 3 out of 7 valuation due diligence checks.

Norfolk Southern's stock has dropped -11.47% in the past year. It has underperformed other stocks in the railroad industry by -4 percentage points.