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Best Railroad Stocks to Buy Now (2022)
Top railroad stocks in 2022 ranked by overall Zen Score. See the best railroad stocks to buy now, according to analyst forecasts for the railroads industry.

Industry: Railroads
Ticker
Company
Exchange
Industry
Zen Score
Market Cap
Price
1d %
EBITDA
P/E
D/E
CSX
CSX CORP
NASDAQ
Railroads
$58.22B$27.19-1.59%$7.33B15.19x2.07
CNI
CANADIAN NATIONAL RAILWAY CO
NYSE
Railroads
$75.40B$109.99-1.60%$6.80B19.59x1.27
NSC
NORFOLK SOUTHERN CORP
NYSE
Railroads
$50.39B$214.55-1.00%$5.84B17.03x1.99
WAB
WESTINGHOUSE AIR BRAKE TECHNOLOGIES CORP
NYSE
Railroads
$14.86B$81.72-1.64%$1.43B23.96x0.85
UNP
UNION PACIFIC CORP
NYSE
Railroads
$124.40B$199.20-1.30%$12.30B18.53x4.07
CP
CANADIAN PACIFIC RAILWAY LTD
NYSE
Railroads
$63.81B$68.62-0.65%$3.38B30.98x0.97
USDP
USD PARTNERS LP
NYSE
Railroads
$131.85M$3.95-2.95%$50.28M5.72x-8.61
TRN
TRINITY INDUSTRIES INC
NYSE
Railroads
$1.79B$21.87-4.62%$637.10M12.94x7.39
GBX
GREENBRIER COMPANIES INC
NYSE
Railroads
$829.68M$25.46-2.26%$209.82M14.22x1.79
RVSN
RAIL VISION LTD
NASDAQ
Railroads
$10.51M$0.66-12.80%-$10.26M-0.67x0.19
KIQ
KELSO TECHNOLOGIES INC
NYSEMKT
Railroads
$16.30M$0.30-1.96%-$43.99k-7.50x0.11
RAIL
FREIGHTCAR AMERICA INC
NASDAQ
Railroads
$63.13M$3.78-1.31%$17.73M-9.69x-21.92
FSTR
FOSTER L B CO
NASDAQ
Railroads
$106.56M$9.750.21%$18.66M44.32x1.02

Railroad Stocks FAQ

What are the best railroad stocks to buy right now in Oct 2022?

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

1. Csx (NASDAQ:CSX)


Csx (NASDAQ:CSX) is the top railroad stock with a Zen Score of 54, which is 15 points higher than the railroad industry average of 39. It passed 20 out of 38 due diligence checks and has strong fundamentals. Csx has seen its stock lose -10.44% over the past year, underperforming other railroad stocks by -1 percentage points.

Csx has an average 1 year price target of $34.89, an upside of 28.32% from Csx's current stock price of $27.19.

Csx stock has a consensus Buy recommendation according to Wall Street analysts. Of the 18 analysts covering Csx, 27.78% have issued a Strong Buy rating, 22.22% have issued a Buy, 44.44% have issued a hold, while 0% have issued a Sell rating, and 5.56% have issued a Strong Sell.

2. Canadian National Railway Co (NYSE:CNI)


Canadian National Railway Co (NYSE:CNI) is the second best railroad stock with a Zen Score of 53, which is 14 points higher than the railroad industry average of 39. It passed 19 out of 38 due diligence checks and has strong fundamentals. Canadian National Railway Co has seen its stock lose -4.95% over the past year, overperforming other railroad stocks by 4 percentage points.

Canadian National Railway Co has an average 1 year price target of $131.82, an upside of 19.85% from Canadian National Railway Co's current stock price of $109.99.

Canadian National Railway Co stock has a consensus Buy recommendation according to Wall Street analysts. Of the 13 analysts covering Canadian National Railway Co, 30.77% have issued a Strong Buy rating, 0% have issued a Buy, 69.23% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

3. Westinghouse Air Brake Technologies (NYSE:WAB)


Westinghouse Air Brake Technologies (NYSE:WAB) is the third best railroad stock with a Zen Score of 52, which is 13 points higher than the railroad industry average of 39. It passed 19 out of 38 due diligence checks and has strong fundamentals. Westinghouse Air Brake Technologies has seen its stock lose -7.28% over the past year, overperforming other railroad stocks by 2 percentage points.

Westinghouse Air Brake Technologies has an average 1 year price target of $99.29, an upside of 21.5% from Westinghouse Air Brake Technologies's current stock price of $81.72.

Westinghouse Air Brake Technologies stock has a consensus Buy recommendation according to Wall Street analysts. Of the 8 analysts covering Westinghouse Air Brake Technologies, 37.5% have issued a Strong Buy rating, 12.5% have issued a Buy, 50% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

What are the railroad stocks with highest dividends?

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

1. Usd Partners (NYSE:USDP)


Usd Partners (NYSE:USDP) has an annual dividend yield of 12.32%, which is 9 percentage points higher than the railroad industry average of 3.38%. 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 70.4% indicates that its high dividend yield is sustainable for the long-term.

2. Greenbrier Companies (NYSE:GBX)


Greenbrier Companies (NYSE:GBX) has an annual dividend yield of 4.24%, which is 1 percentage points higher than the railroad industry average of 3.38%. 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 60.3% indicates that its dividend yield is sustainable for the long-term.

3. Trinity Industries (NYSE:TRN)


Trinity Industries (NYSE:TRN) has an annual dividend yield of 4.12%, which is 1 percentage points higher than the railroad industry average of 3.38%. 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 53.3% indicates that its dividend yield is sustainable for the long-term.

Why are railroad stocks down?

Railroad stocks were down -1.38% in the last day, and down -4.36% over the last week. Csx was the among the top losers in the railroads industry, dropping -1.59% yesterday.

Shares of companies in the broader industrials sector are trading lower as stocks pull back after gaining on Wednesday. Jobless claims for September came in below estimates, adding to concern of further Fed rate hikes which could impact economic activity and consumer spending.

What are the most undervalued railroad stocks?

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

1. Csx (NASDAQ:CSX)


Csx (NASDAQ:CSX) is the most undervalued railroad stock based on WallStreetZen's Valuation Score. Csx has a valuation score of 57, which is 21 points higher than the railroad industry average of 36. It passed 4 out of 7 valuation due diligence checks.

Csx's stock has dropped -10.44% in the past year. It has underperformed other stocks in the railroad industry by -1 percentage points.

2. Norfolk Southern (NYSE:NSC)


Norfolk Southern (NYSE:NSC) is the second most undervalued railroad stock based on WallStreetZen's Valuation Score. Norfolk Southern has a valuation score of 57, which is 21 points higher than the railroad industry average of 36. It passed 4 out of 7 valuation due diligence checks.

Norfolk Southern's stock has dropped -12.16% in the past year. It has underperformed other stocks in the railroad industry by -3 percentage points.

3. Union Pacific (NYSE:UNP)


Union Pacific (NYSE:UNP) is the third most undervalued railroad stock based on WallStreetZen's Valuation Score. Union Pacific has a valuation score of 43, which is 7 points higher than the railroad industry average of 36. It passed 3 out of 7 valuation due diligence checks.

Union Pacific's stock has dropped -1.23% in the past year. It has overperformed other stocks in the railroad industry by 8 percentage points.

Are railroad stocks a good buy now?

45.45% of railroad stocks rated by analysts are a buy right now. On average, analysts expect railroad stocks to rise by 23.47% over the next year.

What is the average p/e ratio of the railroads industry?

The average P/E ratio of the railroads industry is 20.25x.
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Information is provided 'as-is' and solely for informational purposes and is not advice. WallStreetZen does not bear any responsibility for any losses or damage that may occur as a result of reliance on this data.