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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.

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:

Greenbrier Companies (NYSE:GBX) 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 Greenbrier Companies (NYSE:GBX) is: Value: A, Growth: C, Momentum: C, Sentiment: C, Safety: B, Financials: C, and AI: C.

Greenbrier Companies (NYSE:GBX) has a Due Diligence Score of 34, which is 2 points higher than the railroad industry average of 32.

GBX passed 11 out of 38 due diligence checks and has average fundamentals. Greenbrier Companies has seen its stock lose -12.73% over the past year, underperforming other railroad stocks by -12 percentage points.

Greenbrier Companies has an average 1 year price target of $57.00, an upside of 25.08% from Greenbrier Companies's current stock price of $45.57.

Greenbrier Companies stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 1 analyst covering Greenbrier Companies, 100% have issued a Strong Buy rating, 0% have issued a Buy, 0% 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 #2 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 Foster L B Co (NASDAQ:FSTR) is: Value: B, Growth: C, Momentum: B, Sentiment: C, Safety: C, Financials: B, and AI: C.

Foster L B Co (NASDAQ:FSTR) has a Due Diligence Score of 33, which is 1 points higher than the railroad industry average of 32.

FSTR passed 13 out of 38 due diligence checks and has average fundamentals. Foster L B Co has seen its stock return 36.17% over the past year, overperforming other railroad stocks by 37 percentage points.

Freightcar America (NASDAQ:RAIL) is the #3 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: C, Momentum: C, Sentiment: A, Safety: C, Financials: B, and AI: C.

Freightcar America (NASDAQ:RAIL) has a Due Diligence Score of 16, which is -16 points lower than the railroad industry average of 32. Although this number is below the industry average, our proven quant model rates RAIL as a "B".

RAIL passed 7 out of 38 due diligence checks and has weak fundamentals. Freightcar America has seen its stock lose -26.46% over the past year, underperforming other railroad stocks by -25 percentage points.

Out of 5 railroad stocks that have issued dividends in the past year, the 3 railroad stocks with the highest dividend yields are:

Greenbrier Companies (NYSE:GBX) has an annual dividend yield of 2.72%, which is 1 percentage points higher than the railroad industry average of 1.64%. 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 16.6% indicates that its dividend yield is sustainable for the long-term.

Union Pacific (NYSE:UNP) has an annual dividend yield of 2.4%, which is 1 percentage points higher than the railroad industry average of 1.64%. 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 46.5% indicates that its dividend yield is sustainable for the long-term.

Trinity Industries (NYSE:TRN) has an annual dividend yield of 2.15%, which is 1 percentage points higher than the railroad industry average of 1.64%. 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 74.6% indicates that its dividend yield is sustainable for the long-term.

Railroad stocks were down -0.54% in the last day, and down -0.83% over the last week.

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

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 A. Valuation is one of 7 Component Grades used to calculate the overall Zen Rating.

Greenbrier Companies has a valuation score of 43, which is 12 points higher than the railroad industry average of 31. It passed 3 out of 7 valuation due diligence checks.

Greenbrier Companies's stock has dropped -12.73% in the past year. It has underperformed other stocks in the railroad industry by -12 percentage points.

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 12 points higher than the railroad industry average of 31. It passed 3 out of 7 valuation due diligence checks.

Foster L B Co's stock has gained 36.17% in the past year. It has overperformed other stocks in the railroad industry by 37 percentage points.

Canadian National Railway Co (NYSE:CNI) 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.

Canadian National Railway Co has a valuation score of 43, which is 12 points higher than the railroad industry average of 31. It passed 3 out of 7 valuation due diligence checks.

Canadian National Railway Co's stock has dropped -14.37% in the past year. It has underperformed other stocks in the railroad industry by -13 percentage points.

50% of railroad stocks rated by analysts are a strong buy right now. On average, analysts expect railroad stocks to rise by 12.94% over the next year.

0% of railroad stocks have a Zen Rating of A (Strong Buy), 33.33% of railroad stocks are rated B (Buy), 55.56% are rated C (Hold), 11.11% are rated D (Sell), and 0% are rated F (Strong Sell).