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Best Railroad Stocks to Buy Now (2024)
Top railroad stocks in 2024 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
Forecast Score
Market Cap
Price
Price Target
Upside/Downside
Top Analysts Upside/Downside
Consensus
Top Analysts Consensus
Analysts
Top Analysts
Fore. Revenue Growth
Fore. Earnings Growth
Forecast ROE
Forecast ROA
CNI
CANADIAN NATIONAL RAILWAY CO
$81.31B$127.52$139.119.09%Hold96.48%5.92%N/AN/A
CSX
CSX CORP
$66.49B$34.01$39.5016.14%Strong Buy102.84%6.20%N/AN/A
WAB
WESTINGHOUSE AIR BRAKE TECHNOLOGIES CORP
$29.91B$169.60$158.80-6.37%Strong Buy104.14%11.59%N/AN/A
UNP
UNION PACIFIC CORP
$143.20B$234.71$262.1511.69%Buy133.33%12.71%N/AN/A
CP
CANADIAN PACIFIC KANSAS CITY LTD
$74.89B$80.29$98.9023.18%Buy107.41%24.58%N/AN/A
GBX
GREENBRIER COMPANIES INC
$1.57B$50.38$64.0027.03%Strong Buy2-0.47%N/AN/AN/A
TRN
TRINITY INDUSTRIES INC
$2.47B$30.21$33.5010.89%Strong Buy2-1.40%N/AN/AN/A
NSC
NORFOLK SOUTHERN CORP
$52.10B$230.62$263.4414.23%Buy164.14%72.27%N/AN/A
FSTR
FOSTER L B CO
$315.10M$28.74$27.00-6.05%Hold1-2.25%N/AN/AN/A
RAIL
FREIGHTCAR AMERICA INC
$67.17M$3.59N/AN/AN/AN/AN/AN/AN/AN/A
RVSN
RAIL VISION LTD
$3.27M$1.09N/AN/AN/AN/AN/AN/AN/AN/A

Railroad Stocks FAQ

What are the best railroad stocks to buy right now in May 2024?

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

1. Canadian National Railway Co (NYSE:CNI)


Canadian National Railway Co (NYSE:CNI) is the top railroad stock with a Zen Score of 47, which is 15 points higher than the railroad industry average of 32. It passed 17 out of 38 due diligence checks and has strong fundamentals. Canadian National Railway Co has seen its stock return 8.29% over the past year, underperforming other railroad stocks by -13 percentage points.

Canadian National Railway Co has an average 1 year price target of $139.11, an upside of 9.09% from Canadian National Railway Co's current stock price of $127.52.

Canadian National Railway Co stock has a consensus Hold recommendation according to Wall Street analysts. Of the 9 analysts covering Canadian National Railway 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.

2. Westinghouse Air Brake Technologies (NYSE:WAB)


Westinghouse Air Brake Technologies (NYSE:WAB) is the second best railroad stock with a Zen Score of 43, which is 11 points higher than the railroad industry average of 32. It passed 16 out of 38 due diligence checks and has strong fundamentals. Westinghouse Air Brake Technologies has seen its stock return 72.59% over the past year, overperforming other railroad stocks by 51 percentage points.

Westinghouse Air Brake Technologies has an average 1 year price target of $158.80, a downside of -6.37% from Westinghouse Air Brake Technologies's current stock price of $169.60.

Westinghouse Air Brake Technologies stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 10 analysts covering Westinghouse Air Brake Technologies, 70% have issued a Strong Buy rating, 0% have issued a Buy, 30% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

3. Csx (NASDAQ:CSX)


Csx (NASDAQ:CSX) is the third best railroad stock with a Zen Score of 43, which is 11 points higher than the railroad industry average of 32. It passed 15 out of 38 due diligence checks and has strong fundamentals. Csx has seen its stock return 6.61% over the past year, underperforming other railroad stocks by -15 percentage points.

Csx has an average 1 year price target of $39.50, an upside of 16.14% from Csx's current stock price of $34.01.

Csx stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 10 analysts covering Csx, 60% have issued a Strong Buy rating, 20% have issued a Buy, 20% 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 8 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 3.57%, which is 2 percentage points higher than the railroad industry average of 1.88%. 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 69.7% indicates that its dividend yield is sustainable for the long-term.

2. Greenbrier Companies (NYSE:GBX)


Greenbrier Companies (NYSE:GBX) has an annual dividend yield of 2.38%, which is the same as the railroad industry average of 1.88%. 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 33.1% indicates that its dividend yield is sustainable for the long-term.

3. Norfolk Southern (NYSE:NSC)


Norfolk Southern (NYSE:NSC) has an annual dividend yield of 2.34%, which is the same as the railroad industry average of 1.88%. 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 86.7% indicates that its dividend yield is sustainable for the long-term.

Why are railroad stocks up?

Railroad stocks were up 0.35% in the last day, and down -1.44% 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 WallStreetZen's Valuation Score, 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 WallStreetZen's Valuation Score. Greenbrier Companies has a valuation score of 43, which is 18 points higher than the railroad industry average of 25. It passed 3 out of 7 valuation due diligence checks.

Greenbrier Companies's stock has gained 81.16% in the past year. It has overperformed other stocks in the railroad industry by 60 percentage points.

2. Trinity Industries (NYSE:TRN)


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 18 points higher than the railroad industry average of 25. It passed 3 out of 7 valuation due diligence checks.

Trinity Industries's stock has gained 40.84% in the past year. It has overperformed other stocks in the railroad industry by 19 percentage points.

3. Norfolk Southern (NYSE:NSC)


Norfolk Southern (NYSE:NSC) is the third most undervalued railroad stock based on WallStreetZen's Valuation Score. Norfolk Southern has a valuation score of 29, which is 4 points higher than the railroad industry average of 25. It passed 2 out of 7 valuation due diligence checks.

Norfolk Southern's stock has gained 5.67% in the past year. It has underperformed other stocks in the railroad industry by -16 percentage points.

Are railroad stocks a good buy now?

44.44% of railroad stocks rated by analysts are a strong buy right now. On average, analysts expect railroad stocks to rise by 10.17% 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 24.59x.
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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.