Top Railroad Stocks for 2026 and How to Invest

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

Norfolk Southern (NSC +2.00%) is the other Eastern-focused railroad, operating more than 19,000 track miles across 22 states and the District of Columbia. The company is a major transporter of industrial, agricultural, and consumer products and is a primary source of transportation for coal and auto parts. Norfolk Southern also has an extensive intermodal network in the East that carries containers from ship hulls to truck flatbeds.

It remains to be seen how long Norfolk Southern will be an independent company. The railroad has agreed to a merger with Union Pacific -- although the deal is subject to regulatory review and could take years to close.

How to invest in railroad stocks

1. Open your brokerage app: Log in to your brokerage account where you handle your investments.
2. Search for the stock: Enter the ticker or company name into the search bar to bring up the stock's trading page.
3. Decide how many shares to buy: Consider your investment goals and how much of your portfolio you want to allocate to this stock.
4. Select order type: Choose between a market order to buy at the current price or a limit order to specify the maximum price you're willing to pay.
5. Submit your order: Confirm the details and submit your buy order.
6. Review your purchase: Check your portfolio to ensure your order was filled as expected and adjust your investment strategy accordingly.

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 +0.63%)(BRK.B +0.62%). 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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