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Best Railroad Stocks to Buy Now (2023)
Top railroad stocks in 2023 ranked by overall Zen Score. See the best railroad stocks to buy now, according to analyst forecasts for the railroads industry.

Industry: Railroads
OverviewZen ScorePriceValuationFinancialsForecast
Earnings & RevenueDividendsOwnershipTechnicals
Ticker
Company
Forecast Score
Market Cap
Price
Price Target
Upside/Downside
Consensus
Analysts
Fore. Revenue Growth
Fore. Earnings Growth
Forecast ROE
Forecast ROA
CSX
CSX CORP
$59.30B$28.75$33.7317.31%Buy11N/AN/AN/AN/A
NSC
NORFOLK SOUTHERN CORP
$46.22B$202.93$247.0521.74%Buy19N/AN/AN/AN/A
WAB
WESTINGHOUSE AIR BRAKE TECHNOLOGIES CORP
$17.56B$97.34$112.6715.75%Buy6N/AN/AN/AN/A
UNP
UNION PACIFIC CORP
$118.23B$193.23$217.6212.62%Buy13N/AN/AN/AN/A
CNI
CANADIAN NATIONAL RAILWAY CO
$76.90B$114.60$122.837.18%Hold6N/AN/AN/AN/A
KIQ
KELSO TECHNOLOGIES INC
$16.30M$0.30N/AN/AN/AN/AN/AN/AN/AN/A
CP
CANADIAN PACIFIC RAILWAY LTD
$70.55B$75.80$83.8610.63%Strong Buy7N/AN/AN/AN/A
GBX
GREENBRIER COMPANIES INC
$1.03B$31.52$37.0017.39%Hold1N/AN/AN/AN/A
TRN
TRINITY INDUSTRIES INC
$1.91B$23.55$27.3316.06%Buy3N/AN/AN/AN/A
RAIL
FREIGHTCAR AMERICA INC
$56.29M$3.18N/AN/AN/AN/AN/AN/AN/AN/A
FSTR
FOSTER L B CO
$128.44M$11.72N/AN/AN/AN/AN/AN/AN/AN/A
RVSN
RAIL VISION LTD
$23.37M$1.47N/AN/AN/AN/AN/AN/AN/AN/A
USDP
USD PARTNERS LP
$99.59M$2.95N/AN/AN/AN/AN/AN/AN/AN/A
1

Railroad Stocks FAQ

What are the best railroad stocks to buy right now in Mar 2023?

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

1. Csx (NASDAQ:CSX)


Csx (NASDAQ:CSX) is the top railroad stock with a Zen Score of 45, which is 19 points higher than the railroad industry average of 26. It passed 17 out of 38 due diligence checks and has strong fundamentals. Csx has seen its stock lose -23.39% over the past year.

Csx has an average 1 year price target of $33.73, an upside of 17.31% from Csx's current stock price of $28.75.

Csx stock has a consensus Buy recommendation according to Wall Street analysts. Of the 11 analysts covering Csx, 36.36% have issued a Strong Buy rating, 18.18% have issued a Buy, 36.36% have issued a hold, while 0% have issued a Sell rating, and 9.09% have issued a Strong Sell.

2. Norfolk Southern (NYSE:NSC)


Norfolk Southern (NYSE:NSC) is the second best railroad stock with a Zen Score of 40, which is 14 points higher than the railroad industry average of 26. It passed 14 out of 38 due diligence checks and has average fundamentals. Norfolk Southern has seen its stock lose -28.7% over the past year, underperforming other railroad stocks by -5 percentage points.

Norfolk Southern has an average 1 year price target of $247.05, an upside of 21.74% from Norfolk Southern's current stock price of $202.93.

Norfolk Southern stock has a consensus Buy recommendation according to Wall Street analysts. Of the 19 analysts covering Norfolk Southern, 26.32% have issued a Strong Buy rating, 15.79% have issued a Buy, 52.63% have issued a hold, while 0% have issued a Sell rating, and 5.26% have issued a Strong Sell.

3. Union Pacific (NYSE:UNP)


Union Pacific (NYSE:UNP) is the third best railroad stock with a Zen Score of 39, which is 13 points higher than the railroad industry average of 26. It passed 14 out of 38 due diligence checks and has average fundamentals. Union Pacific has seen its stock lose -29.82% over the past year, underperforming other railroad stocks by -6 percentage points.

Union Pacific has an average 1 year price target of $217.62, an upside of 12.62% from Union Pacific's current stock price of $193.23.

Union Pacific stock has a consensus Buy recommendation according to Wall Street analysts. Of the 13 analysts covering Union Pacific, 30.77% have issued a Strong Buy rating, 23.08% have issued a Buy, 38.46% have issued a hold, while 7.69% have issued a Sell rating, and 0% have issued a Strong Sell.

What are the railroad stocks with highest dividends?

Out of 9 railroad stocks that have issued dividends in the past year, the 3 railroad stocks with the highest dividend yields are:

1. Usd Partners (NYSE:USDP)


Usd Partners (NYSE:USDP) has an annual dividend yield of 16.75%, which is 13 percentage points higher than the railroad industry average of 3.79%. Usd Partners's dividend payout is not stable, having dropped more than 10% one times in the last 10 years. Usd Partners's dividend has not shown consistent growth over the last 10 years.

Usd Partners's dividend payout ratio of -26.3% indicates that its high dividend yield might not be sustainable for the long-term.

2. Trinity Industries (NYSE:TRN)


Trinity Industries (NYSE:TRN) has an annual dividend yield of 4.03%, which is the same as the railroad industry average of 3.79%. 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 130.1% indicates that its dividend yield might not be sustainable for the long-term.

3. Greenbrier Companies (NYSE:GBX)


Greenbrier Companies (NYSE:GBX) has an annual dividend yield of 3.43%, which is the same as the railroad industry average of 3.79%. 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 180% indicates that its dividend yield might not be sustainable for the long-term.

Why are railroad stocks up?

Railroad stocks were up 1.55% in the last day, and up 0.43% 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. Csx (NASDAQ:CSX)


Csx (NASDAQ:CSX) is the most undervalued railroad stock based on WallStreetZen's Valuation Score. Csx has a valuation score of 43, which is 23 points higher than the railroad industry average of 20. It passed 3 out of 7 valuation due diligence checks.

Csx's stock has dropped -23.39% in the past year. It has performed in line with other stocks in the railroad industry.

2. Norfolk Southern (NYSE:NSC)


Norfolk Southern (NYSE:NSC) is the second most undervalued railroad stock based on WallStreetZen's Valuation Score. Norfolk Southern has a valuation score of 43, which is 23 points higher than the railroad industry average of 20. It passed 3 out of 7 valuation due diligence checks.

Norfolk Southern's stock has dropped -28.7% in the past year. It has underperformed other stocks in the railroad industry by -5 percentage points.

3. Foster L B Co (NASDAQ:FSTR)


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 29, which is 9 points higher than the railroad industry average of 20. It passed 2 out of 7 valuation due diligence checks.

Foster L B Co's stock has dropped -24.53% in the past year. It has underperformed other stocks in the railroad industry by -1 percentage points.

Are railroad stocks a good buy now?

62.5% of railroad stocks rated by analysts are a buy right now. On average, analysts expect railroad stocks to rise by 14.9% 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 19.6x.
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