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Best Railroad Stocks to Buy Now (2026)

Top railroad stocks in 2026 ranked by overall Zen Rating. "A" Rated stocks have returned an average of +28.50% per year, and are the best railroad stocks to buy now. Learn More.

According to Zen Ratings, our proprietary rating system that evaluates 115 factors proven to drive growth in stocks and assigns each stock in our system an overall letter grade as well as 7 individual Component Grades for Value, Growth, Momentum, Sentiment, Safety, Financials, and proprietary AI algorithms, the 3 best railroad stocks to buy right now are:

Csx (NASDAQ:CSX) is the #1 top railroad stock out of 11 with a Zen Rating of C. Stocks with a rating of C have had an average return of +5.11% per year. Learn more.

The Component Grade breakdown for Csx (NASDAQ:CSX) is: Value: C, Growth: C, Momentum: B, Sentiment: B, Safety: A, Financials: C, and AI: B.

Csx (NASDAQ:CSX) has a Due Diligence Score of 40, which is 1 points higher than the railroad industry average of 39.

CSX passed 15 out of 38 due diligence checks and has average fundamentals. Csx has seen its stock return 45.68% over the past year, overperforming other railroad stocks by 20 percentage points.

Csx has an average 1 year price target of $53.33, an upside of 2.6% from Csx's current stock price of $51.98.

Csx stock has a consensus Buy recommendation according to Wall Street analysts. Of the 16 analysts covering Csx, 56.25% have issued a Strong Buy rating, 12.5% have issued a Buy, 25% have issued a hold, while 0% have issued a Sell rating, and 6.25% have issued a Strong Sell.

Westinghouse Air Brake Technologies (NYSE:WAB) is the #2 top railroad stock out of 11 with a Zen Rating of C. Stocks with a rating of C have had an average return of +5.11% per year. Learn more.

The Component Grade breakdown for Westinghouse Air Brake Technologies (NYSE:WAB) is: Value: C, Growth: C, Momentum: C, Sentiment: C, Safety: C, Financials: C, and AI: C.

Westinghouse Air Brake Technologies (NYSE:WAB) has a Due Diligence Score of 50, which is 11 points higher than the railroad industry average of 39.

WAB passed 19 out of 38 due diligence checks and has strong fundamentals. Westinghouse Air Brake Technologies has seen its stock return 42.52% over the past year, overperforming other railroad stocks by 17 percentage points.

Westinghouse Air Brake Technologies has an average 1 year price target of $333.43, an upside of 18.16% from Westinghouse Air Brake Technologies's current stock price of $282.18.

Westinghouse Air Brake Technologies stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 7 analysts covering Westinghouse Air Brake Technologies, 71.43% have issued a Strong Buy rating, 0% have issued a Buy, 28.57% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Foster L B Co (NASDAQ:FSTR) is the #3 top railroad stock out of 11 with a Zen Rating of C. Stocks with a rating of C have had an average return of +5.11% per year. Learn more.

The Component Grade breakdown for Foster L B Co (NASDAQ:FSTR) is: Value: C, Growth: C, Momentum: C, Sentiment: C, Safety: B, Financials: B, and AI: C.

Foster L B Co (NASDAQ:FSTR) has a Due Diligence Score of 49, which is 10 points higher than the railroad industry average of 39.

FSTR passed 15 out of 33 due diligence checks and has strong fundamentals. Foster L B Co has seen its stock return 35.91% over the past year, overperforming other railroad stocks by 10 percentage points.

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

Trinity Industries (NYSE:TRN) has an annual dividend yield of 4.85%, which is 3 percentage points higher than the railroad industry average of 1.94%. 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 29.1% indicates that its high dividend yield is sustainable for the long-term.

Greenbrier Companies (NYSE:GBX) has an annual dividend yield of 3.52%, which is 2 percentage points higher than the railroad industry average of 1.94%. 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 51.8% indicates that its dividend yield is sustainable for the long-term.

Union Pacific (NYSE:UNP) has an annual dividend yield of 1.87%, which is the same as the railroad industry average of 1.94%. Union Pacific's dividend payout is stable, having never dropped by more than 10% in the last 10 years. Union Pacific's dividend has shown consistent growth over the last 10 years.

Union Pacific's dividend payout ratio of 43.3% indicates that its dividend yield is sustainable for the long-term.

Railroad stocks were down -0.28% in the last day, and up 1.63% over the last week. Canadian Pacific Kansas City was the among the top losers in the railroads industry, dropping -1.87% yesterday.

Canadian Pacific Kansas City shares are trading lower after the company reported worse-than-expected Q3 financial results.

Based on the Valuation rating, one of the 7 components of a stocks overall Zen Ratings grade, which evaluates factors including estimated earnings yield, earnings before interest and taxes/enterprise value, cash flow yield, free cash flow to price, and price-to-earnings growth (PEG ratio), the 3 most undervalued railroad stocks right now are:

Greenbrier Companies (NYSE:GBX) is the most undervalued railroad stock based on its Valuation Rating of C. Valuation is one of 7 Component Grades used to calculate the overall Zen Rating.

Greenbrier Companies has a valuation score of 57, which is 24 points higher than the railroad industry average of 33. It passed 4 out of 7 valuation due diligence checks.

Greenbrier Companies's stock has dropped -17.19% in the past year. It has underperformed other stocks in the railroad industry by -43 percentage points.

Trinity Industries (NYSE:TRN) is the second most undervalued railroad stock based on its Valuation Rating of C. Valuation is one of 7 Component Grades used to calculate the overall Zen Rating.

Trinity Industries has a valuation score of 43, which is 10 points higher than the railroad industry average of 33. It passed 3 out of 7 valuation due diligence checks.

Trinity Industries's stock has dropped -9.49% in the past year. It has underperformed other stocks in the railroad industry by -35 percentage points.

Foster L B Co (NASDAQ:FSTR) is the third most undervalued railroad stock based on its Valuation Rating of C. Valuation is one of 7 Component Grades used to calculate the overall Zen Rating.

Foster L B Co has a valuation score of 71, which is 38 points higher than the railroad industry average of 33. It passed 5 out of 7 valuation due diligence checks.

Foster L B Co's stock has gained 35.91% in the past year. It has overperformed other stocks in the railroad industry by 10 percentage points.

37.5% of railroad stocks rated by analysts are a strong buy right now. On average, analysts expect railroad stocks to rise by 14.44% over the next year.

0% of railroad stocks have a Zen Rating of A (Strong Buy), 0% of railroad stocks are rated B (Buy), 80% are rated C (Hold), 20% are rated D (Sell), and 0% are rated F (Strong Sell).