Sectors & Industries IndustrialsRailroads
Best Railroad Stocks to Buy Now (2025)
Top railroad stocks in 2025 ranked by overall Zen Rating. "A" Rated stocks have returned an average of +32.52% per year, and are the best railroad stocks to buy now. Learn More.

Industry: Railroads

Value Growth Financials Momentum Sentiment Forecast Dividends Due Diligence

Railroads is Zen Rated F and is the 117th ranked industry out of 145 stock market industries

Ticker	Company	Price	1d %	1w %	1m %	3m %	6m %	1y %	3y %	5y %	10y %	52-week High	52-week Low	% off 52-week High	% off 52-week Low	Beta	Volume	Vol 1d %
RAIL	FREIGHTCAR AMERICA INC	$5.78	-5.71%	-1.87%	4.52%	-52.27%	-61.12%	65.62%	3.21%	285.33%	-77.85%	$16.10	$3.02	64.10%	91.39%	1.25	289,817	-43.39%
WAB	WESTINGHOUSE AIR BRAKE TECHNOLOGIES CORP	$184.74	0.21%	1.52%	1.87%	-11.97%	-2.42%	14.69%	100.96%	227.44%	96.43%	$210.88	$147.66	12.40%	25.11%	1.07	1,133,908	38.84%
FSTR	FOSTER L B CO	$19.97	-1.38%	3.36%	1.47%	-28.40%	1.47%	-14.11%	40.93%	38.78%	-53.26%	$30.77	$14.23	35.09%	40.34%	0.84	42,774	65.46%
GBX	GREENBRIER COMPANIES INC	$42.42	-0.33%	0.86%	-17.18%	-36.81%	-30.09%	-14.11%	1.63%	149.82%	-26.47%	$71.06	$37.77	40.30%	12.31%	1.14	382,058	-44.28%
TRN	TRINITY INDUSTRIES INC	$25.10	0.20%	2.12%	-10.55%	-34.46%	-29.75%	-3.54%	-7.89%	30.12%	-7.35%	$39.83	$23.50	36.98%	6.81%	1.09	635,872	58.57%
UNP	UNION PACIFIC CORP	$215.66	0.52%	-1.87%	-8.71%	-13.71%	-7.11%	-9.07%	-7.39%	34.96%	103.01%	$258.07	$204.66	16.43%	5.37%	0.76	3,101,183	7.44%
NSC	NORFOLK SOUTHERN CORP	$224.05	0.31%	0.95%	-5.40%	-12.89%	-11.35%	-2.72%	-12.69%	30.95%	122.16%	$277.60	$201.63	19.29%	11.12%	0.86	1,101,764	4.63%
CSX	CSX CORP	$28.07	0.07%	1.74%	-4.62%	-14.58%	-16.31%	-15.50%	-18.14%	27.15%	133.33%	$37.10	$26.22	24.34%	7.06%	0.85	12,704,197	28.23%
CNI	CANADIAN NATIONAL RAILWAY CO	$96.82	0.40%	-0.97%	-0.66%	-7.97%	-11.83%	-20.27%	-17.60%	16.83%	50.06%	$129.18	$91.65	25.05%	5.64%	0.75	1,176,865	-22.17%
CP	CANADIAN PACIFIC KANSAS CITY LTD	$72.47	0.54%	-0.63%	3.22%	-9.21%	-7.30%	-7.60%	0.85%	59.39%	90.13%	$87.72	$66.49	17.38%	8.99%	0.80	3,532,198	9.16%
RVSN	RAIL VISION LTD	$0.37	-1.07%	-12.50%	-14.12%	-48.54%	-25.65%	-63.63%	-96.41%	N/A	N/A	$2.72	$0.27	86.36%	35.90%	0.78	320,989	-16.35%

Railroad Stocks FAQ

What are the best railroad stocks to buy right now in May 2025?

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:

1. Freightcar America (NASDAQ:RAIL)

Freightcar America (NASDAQ:RAIL) is the #1 top railroad stock out of 11 with a Zen Rating of B. Stocks with a rating of B have had an average return of +19.88% per year. Learn more.

The Component Grade breakdown for Freightcar America (NASDAQ:RAIL) is: Value: C, Growth: B, Momentum: C, Sentiment: C, Safety: D, Financials: C, and AI: C.

Freightcar America (NASDAQ:RAIL) has a Due Diligence Score of 14, which is -20 points lower than the railroad industry average of 34. Although this number is below the industry average, our proven quant model rates RAIL as a "B".

RAIL passed 6 out of 38 due diligence checks and has weak fundamentals. Freightcar America has seen its stock return 65.62% over the past year, overperforming other railroad stocks by 71 percentage points.

2. Westinghouse Air Brake Technologies (NYSE:WAB)

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 +7.53% 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: B, Financials: C, and AI: C.

Westinghouse Air Brake Technologies (NYSE:WAB) has a Due Diligence Score of 52, which is 18 points higher than the railroad industry average of 34.

WAB passed 19 out of 38 due diligence checks and has strong fundamentals. Westinghouse Air Brake Technologies has seen its stock return 14.69% over the past year, overperforming other railroad stocks by 20 percentage points.

Westinghouse Air Brake Technologies has an average 1 year price target of $211.83, an upside of 14.67% from Westinghouse Air Brake Technologies's current stock price of $184.74.

Westinghouse Air Brake Technologies stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 6 analysts covering Westinghouse Air Brake Technologies, 66.67% have issued a Strong Buy rating, 0% have issued a Buy, 33.33% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

3. Foster L B Co (NASDAQ:FSTR)

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 +7.53% per year. Learn more.

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

Foster L B Co (NASDAQ:FSTR) has a Due Diligence Score of 33, which is -1 points lower than the railroad industry average of 34.

FSTR passed 13 out of 38 due diligence checks and has average fundamentals. Foster L B Co has seen its stock lose -14.11% over the past year, underperforming other railroad stocks by -9 percentage points.

Foster L B Co has an average 1 year price target of $25.00, an upside of 25.19% from Foster L B Co's current stock price of $19.97.

Foster L B Co stock has a consensus Hold recommendation according to Wall Street analysts. Of the 1 analyst covering Foster L B Co, 0% have issued a Strong Buy rating, 0% have issued a Buy, 100% 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 6 railroad stocks that have issued dividends in the past year, the 3 railroad stocks with the highest dividend yields are:

1. Trinity Industries (NYSE:TRN)

Trinity Industries (NYSE:TRN) has an annual dividend yield of 3.43%, which is 2 percentage points higher than the railroad industry average of 1.87%. 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 67.5% indicates that its dividend yield is sustainable for the long-term.

2. Norfolk Southern (NYSE:NSC)

Norfolk Southern (NYSE:NSC) has an annual dividend yield of 2.41%, which is 1 percentage points higher than the railroad industry average of 1.87%. 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 36.8% indicates that its dividend yield is sustainable for the long-term.

3. Greenbrier Companies (NYSE:GBX)

Greenbrier Companies (NYSE:GBX) has an annual dividend yield of 2.12%, which is the same as the railroad industry average of 1.87%. 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 18.5% indicates that its dividend yield is sustainable for the long-term.

Why are railroad stocks up?

Railroad stocks were up 0.25% in the last day, and up 0.13% over the last week.

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

What are the most undervalued railroad stocks?

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:

1. Greenbrier Companies (NYSE:GBX)

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

Greenbrier Companies 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.

Greenbrier Companies's stock has dropped -14.11% in the past year. It has underperformed other stocks in the railroad industry by -9 percentage points.

2. Foster L B Co (NASDAQ:FSTR)

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

Foster L B Co 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.

Foster L B Co's stock has dropped -14.11% in the past year. It has underperformed other stocks in the railroad industry by -9 percentage points.

3. Csx (NASDAQ:CSX)

Csx (NASDAQ:CSX) 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.

Csx 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.

Csx's stock has dropped -15.5% in the past year. It has underperformed other stocks in the railroad industry by -10 percentage points.

Are railroad stocks a good buy now?

44.44% of railroad stocks rated by analysts are a buy right now. On average, analysts expect railroad stocks to rise by 19.72% over the next year.

0% of railroad stocks have a Zen Rating of A (Strong Buy), 10% of railroad stocks are rated B (Buy), 60% are rated C (Hold), 30% are rated D (Sell), and 0% are rated F (Strong Sell).

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

The average P/E ratio of the railroads industry is 20.37x.

WallStreetZen does not provide financial advice and does not issue recommendations or offers to buy stock or sell any security.

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.