Railroad stocks were responsible for one of the first big investment booms in U.S. history. More than a century later, railroads remain a key part of the economy. Railroad stocks offer ownership in the companies that operate in the railway industry. Over the years, the industry has consolidated to a handful of titans responsible for moving most of the goods around the country and to and from ports.
For much of the 20th century, the railroad industry was plagued by bankruptcies. But today, thanks to years of consolidation and a recent push known as Precision Scheduled Railroading, the remaining companies are able to get more from their assets. The changes have brought down costs throughout the industry and allowed the companies to return more cash to shareholders.
Five railroad stocks for 2026
| Name and ticker | Current price | Market cap |
|---|---|---|
| Union Pacific (NYSE:UNP) | $241.74 | $143.2 billion |
| Canadian Pacific Kansas City (NYSE:CP) | $76.61 | $69.0 billion |
| Canadian National Railway (NYSE:CNI) | $96.43 | $59.4 billion |
| CSX (NASDAQ:CSX) | $39.15 | $72.9 billion |
| Norfolk Southern (NYSE:NSC) | $298.32 | $73.0 billion |
1. Union Pacific
NYSE: UNP
Key Data Points
Union Pacific (UNP +2.77%) is one of two large railroads operating in the western half of the country. Its track connects the ports of Los Angeles and Long Beach with U.S. population centers. Union Pacific has long had a reputation among investors as the best-run U.S. railroad, with vast stretches of track through rural areas and connections to western energy assets.
Like most railroads, Union Pacific pays a dividend, with the stock yielding about 2.1% in late 2025. Over the past five years, the railroad has increased revenue at a compound annual rate of about 2.2%. Union Pacific is also seeking to consolidate the industry, in 2025 announcing plans to combine with Norfolk Southern.
2. Canadian Pacific
NYSE: CP
Key Data Points
NYSE: CNI
Key Data Points
4. CSX
NASDAQ: CSX
Key Data Points
CSX (CSX +1.97%) is primarily focused east of the Mississippi River, with more than 20,000 miles of track and access to 70 ports. Due to the more congested landscape, East Coast railroads have historically been less efficient than their Canadian and Western counterparts.
Still, CSX has made great strides in recent years in improving its operations. CSX has delivered compound annual growth of more than 9% over the past five years.
CSX has officially existed only since 1980, but it is a combination of a number of railroads that have been around since the dawn of the U.S. rail age, including the Baltimore & Ohio, the oldest in the nation. The company faces the challenge of maintaining and modernizing many century-old assets along the rails, but it has still generated reliable profits.
5. Norfolk Southern
NYSE: NSC
Key Data Points
One other "railroad company" is a lot more than railroading
Another railroad competes against Union Pacific out West, but it is hidden inside the massive portfolio of Berkshire Hathaway (BRK.A +1.47%)(BRK.B +1.27%). In 2009, Berkshire Hathaway bought full control of Burlington Northern Santa Fe (BNSF), giving it ownership of North America's largest railroad. BNSF operates more than 32,500 miles of track in 28 states and three Canadian provinces.
BNSF's earnings make up only a small fraction of Berkshire Hathaway's overall revenue, and it would be unwise to buy Berkshire solely for its railroad. But for investors looking for exposure to rail in a diversified package, Berkshire Hathaway could be an attractive investment.
Are railroad stocks right for you?
Rail can be plodding, but it does deliver. In a world where the supply chain is under pressure and fuel efficiency is king, rail is well positioned to take a larger part of the transportation pie in the years to come.
- Rail offers the ability to haul a lot more cargo than other transportation methods with just a handful of employees.
- Unlike trucking, rail has a 24/7 operating model.
- Rail companies are reliable dividend payers.
These railroad companies provide a steady stream of income, reliable cash flows, and modest but sustainable revenue growth. Railroad stocks can be an attractive way to diversify for investors looking to keep a growth-focused portfolio on the rails when tech stocks are out of favor.
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