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Best Railroad Stocks to Buy Now (2025)

Top railroad stocks in 2025 ranked by overall Due Diligence Score. See the best railroad stocks to buy now, according to analyst forecasts for the railroads industry.

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

Westinghouse Air Brake Technologies (NYSE:WAB) is the top railroad stock with a Due Diligence Score of 56, which is 21 points higher than the railroad industry average of 35. It passed 21 out of 38 due diligence checks and has strong fundamentals. Westinghouse Air Brake Technologies has seen its stock return 60.97% over the past year, overperforming other railroad stocks by 50 percentage points.

Westinghouse Air Brake Technologies has an average 1 year price target of $215.60, an upside of 4.16% from Westinghouse Air Brake Technologies's current stock price of $206.98.

Westinghouse Air Brake Technologies stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 5 analysts covering Westinghouse Air Brake Technologies, 80% have issued a Strong Buy rating, 0% have issued a Buy, 20% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Union Pacific (NYSE:UNP) is the second best railroad stock with a Due Diligence Score of 41, which is 6 points higher than the railroad industry average of 35. It passed 14 out of 38 due diligence checks and has strong fundamentals. Union Pacific has seen its stock lose -3.01% over the past year, underperforming other railroad stocks by -14 percentage points.

Union Pacific has an average 1 year price target of $264.47, an upside of 12.16% from Union Pacific's current stock price of $235.80.

Union Pacific stock has a consensus Buy recommendation according to Wall Street analysts. Of the 15 analysts covering Union Pacific, 46.67% have issued a Strong Buy rating, 26.67% have issued a Buy, 26.67% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Canadian National Railway Co (NYSE:CNI) is the third best railroad stock with a Due Diligence Score of 39, which is 4 points higher than the railroad industry average of 35. It passed 14 out of 38 due diligence checks and has average fundamentals. Canadian National Railway Co has seen its stock lose -16.28% over the past year, underperforming other railroad stocks by -28 percentage points.

Canadian National Railway Co has an average 1 year price target of $123.87, an upside of 18.61% from Canadian National Railway Co's current stock price of $104.43.

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, 7.69% have issued a Buy, 53.85% have issued a hold, while 0% have issued a Sell rating, and 7.69% have issued a Strong Sell.

Out of 8 railroad stocks that have issued dividends in the past year, the 3 railroad stocks with the highest dividend yields are:

Canadian National Railway Co (NYSE:CNI) has an annual dividend yield of 3.02%, which is 1 percentage points higher than the railroad industry average of 1.67%. Canadian National Railway Co's dividend payout is not stable, having dropped more than 10% one times in the last 10 years. Canadian National Railway Co's dividend has shown consistent growth over the last 10 years.

Canadian National Railway Co's dividend payout ratio of 47.1% indicates that its dividend yield is sustainable for the long-term.

Trinity Industries (NYSE:TRN) has an annual dividend yield of 2.19%, which is 1 percentage points higher than the railroad industry average of 1.67%. 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 53.1% indicates that its dividend yield is sustainable for the long-term.

Norfolk Southern (NYSE:NSC) has an annual dividend yield of 2.14%, which is the same as the railroad industry average of 1.67%. Norfolk Southern's dividend payout is stable, having never dropped by more than 10% in the last 10 years. Norfolk Southern's dividend has shown consistent growth over the last 10 years.

Norfolk Southern's dividend payout ratio of 50.6% indicates that its dividend yield is sustainable for the long-term.

Railroad stocks were up 0.15% in the last day, and up 3.37% over the last week. Rail Vision was the among the top gainers in the railroads industry, gaining 6.92% yesterday.

Rail Vision shares are trading higher after the company announced a binding MoU with Sujan Ventures to introduce its safety systems to the Indian railway market.

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

Greenbrier Companies (NYSE:GBX) is the most undervalued railroad stock based on WallStreetZen's Valuation Score. Greenbrier Companies has a valuation score of 43, which is 14 points higher than the railroad industry average of 29. It passed 3 out of 7 valuation due diligence checks.

Greenbrier Companies's stock has gained 47.62% in the past year. It has overperformed other stocks in the railroad industry by 36 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 14 points higher than the railroad industry average of 29. It passed 3 out of 7 valuation due diligence checks.

Trinity Industries's stock has gained 50.51% in the past year. It has overperformed other stocks in the railroad industry by 39 percentage points.

Foster L B Co (NASDAQ:FSTR) is the third most undervalued railroad stock based on WallStreetZen's Valuation Score. Foster L B Co has a valuation score of 43, which is 14 points higher than the railroad industry average of 29. It passed 3 out of 7 valuation due diligence checks.

Foster L B Co's stock has gained 14.44% in the past year. It has overperformed other stocks in the railroad industry by 3 percentage points.