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.
Top railroad stocks to consider
| Name and ticker | Current price | Market cap |
|---|---|---|
| Union Pacific (NYSE:UNP) | $235.06 | $139.4 billion |
| Canadian Pacific Kansas City (NYSE:CP) | $78.26 | $70.2 billion |
| Canadian National Railway (NYSE:CNI) | $98.41 | $60.2 billion |
| CSX (NASDAQ:CSX) | $38.17 | $71.0 billion |
| Norfolk Southern (NYSE:NSC) | $281.55 | $63.1 billion |
1. Union Pacific
NYSE: UNP
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2. Canadian Pacific
NYSE: CP
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NYSE: CNI
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4. CSX
NASDAQ: CSX
Key Data Points
NYSE: NSC
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FAQ
Investing in railroad stocks FAQ
About the Author
Lou Whiteman has positions in Berkshire Hathaway. The Motley Fool has positions in and recommends Berkshire Hathaway and Canadian Pacific Kansas City. The Motley Fool recommends Canadian National Railway and Union Pacific. The Motley Fool has a disclosure policy.
