The rail industry is one of the major components of the transport sector and is closely linked to economic growth. Rail companies operate a vast network of transport of agricultural products, packaged foods, commodities, electronics and other commodities to businesses and consumers. Leading companies in the industry include Union Pacific Corp. (UNP), Norfolk Southern Corp. (NSC), and CSX Corp. (CSX).
The rail industry does not have its own benchmark, but as part of the broader transport sector, its performance can be reasonably estimated by the iShares Transportation Average ETF (IYT). IYT is below the broader market with total revenue of 26.0% over the last 12 months and Russell 1000 total revenue of less than 37.1%. These performance figures and all other figures below are current as of September 10, 2021.
Here are the top three railroad stocks with the highest value, the fastest growth, and the most momentum.
These are the railroad stocks with the lowest price-earnings ratio (P / E) for 12 months. A low rate of return on stock prices indicates that you pay less for every dollar you make, as profits can be returned to shareholders in the form of dividends or repurchases.
|Highest value railroad stock|
|Price ($)||Market capitalization ($ B)||12-month trailing price-earnings ratio|
|Canadian Pacific Railway Ltd. (CP.TO)||CA $ 86.91||CA $ 58.0||18.0|
|CSX Corp. (CSX)||30.95||69.8||20.9|
|Norfolk Southern Railway (NSC)||247.15||61.0||22.9|
Source: Y Charts
- Canadian Pacific Railway Ltd. : Canadian Pacific Railway is a Canadian-based company that provides rail transport services such as intermodal transport, rail sideline construction, and logistics services. The company was involved in a bidding war with the Canadian National Railway Co. (CNR.TO). Regarding the possibility of a merger with Kansas City Southern (see below). On September 12, Kansas City Southern announced plans to accept a $ 27.2 billion cash and stake acquisition offer in the Canadian Pacific Railway. Canadian National Railway Co. needs to submit a better offer until September 17th.
- CSX Corp. : CSX offers rail transport across 23 states, District of Columbia, Ontario and Quebec. The CSX network has more than 20,000 miles of trucks and access to more than 70 sea, river and lake port terminals.
- Norfolk Southern Railway: Norfolk Southern is a rail transport company operating primarily in the southeast, east and midwest. The company transports raw materials, intermediate products and finished products. Through contracts with other carriers, we provide services throughout the United States and also transport international freight.
These are ranked by a growth model that scores companies based on a 50/50 weighting of year-over-year rate of return growth in the most recent quarter and year-on-year earnings per share (EPS) growth in the most recent quarter. It is a high-ranking railway stock. Both sales and revenue are key factors in a company’s success. Therefore, ranking a company by only one growth indicator can make it more vulnerable to accounting anomalies (such as tax law changes and restructuring costs) for the quarter, and one of the numbers can be non-representative to the business. There is sex. Companies with quarterly EPS or revenue growth of more than 2,500% were excluded as outliers.
|The fastest growing railroad stock|
|Price ($)||Market capitalization ($ B)||EPS growth rate (%)||Revenue growth (%)|
|CSX Corp. (CSX)||30.95||69.8||136.4||32.6|
|Norfolk Southern Railway (NSC)||247.15||61.0||114.4||34.2|
|Canadian Pacific Railway Ltd. (CP.TO)||CA $ 86.91||CA $ 58.0||100.0||14.6|
Source: Y Charts
- CSX Corp. : See company description above.
- Norfolk Southern Railway: See company description above.
- Canadian Pacific Railway Ltd. : See company description above.
These are the railroad stocks that have shown the highest total returns in the last 12 months.
|The most vigorous railroad stock|
|Price ($)||Market capitalization ($ B)||12-month trailing total return (%)|
|Greenbrier Companies Inc. (GBX)||43.44||1.4||62.7|
|Kansas City Southern (KSU)||280.00||25.5||52.8|
|Trinity Industries Inc. (TRN)||28.44||2.8||51.7|
|Russell 1000||Not applicable||Not applicable||37.1|
|iShares Transportation Average ETF (IYT)||Not applicable||Not applicable||26.0|
Source: Y Charts
- Greenbrier Companies Inc. : Greenbrier Companies is primarily engaged in the design, manufacture and marketing of rail freight car equipment. The company manufactures both rail and marine vehicles, provides intermodal and traditional rail vehicle repairs and refurbishments, and offers complementary leasing and services. The company announced on August 26 that it has received over $ 530 million in new orders totaling 5,500 units since the start of the fourth quarter of 2021 on June 1, 2021.
- Southern Kansas City: Kansas City Southern is a holding company that operates a rail system that provides freight services to shippers in the commercial and industrial markets of the United States and Mexico through its subsidiaries. See above for more information on the proposed merger of the Kansas City Southern Railway and the Canadian Pacific Railway. In the second quarter of 2021, which ended June 30, the company reported a net loss of $ 378.6 million due to KSU and its subsidiaries, despite a 37% increase in revenue.
- Trinity Industries Inc. : Trinity Industries is a diversified industrial company. Manufactures rolling stock and related parts and provides rolling stock leasing, management, and maintenance services. In addition, Trinity offers highway products, inland barges, and wind towers.
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