Top 5 Railway Stocks to Invest In

          Top 5 Railway Stocks Publicly Traded to Invest In

The railroad industry has come a long way since the invention of the first steam engine in the early eighteenth century, with over 1.3 million route kilometers globally as of 2020. It has grown into a global industry and is one of the most cost-effective modes of cargo and passenger transportation. The United States has the world's longest rail network, closely followed by Russia, China, Canada, France, India, and Germany.

As the US economy grows, so will the demand for freight transportation. According to the Federal Highway Administration, total freight shipments in the United States will increase by 30% from 18.6 billion tons in 2018 to 24.1 billion tons in 2040. Railroad firms all throughout the world are preparing to tackle this issue today. Rail transportation has evolved into one of the safest modes of transportation in the world.

The railroad industry is a major component of the transportation sector, and its growth is intimately linked to the economy. Agricultural products, packaged foods, commodities, electronics, and other goods are transported by railroad firms across extensive networks to businesses and customers. Union Pacific Corp. (UNP), Norfolk Southern Corp. (NSC), and CSX Corp. are all major players in the business (CSX).

The railroad industry does not have its own benchmark, but being part of the greater transportation sector, the performance of the iShares Transportation Average ETF can be properly approximated (IYT). With a total return of 20.6 percent over the past 12 months, IYT has lagged the broader market, falling short of the Russell 1000's total return of 23.0 percent.

The top 5 railroad stocks with the best value, fastest growth, and most momentum are listed below:

Union Pacific Corporation (NYSE: UNP) provides train transportation for agricultural products, coal, and renewable energy, animal feed, petroleum, industrial chemicals, metals, and ores, among other commodities. Its rail network, as of 2020, had 32,313 route miles connecting ports on the Pacific and Gulf coasts with the Midwest and the Eastern United States. The company's headquarters are in Omaha, Nebraska, where it was founded in 1862. Despite the COVID-19 pandemic, Union Pacific Corporation's (NYSE: UNP) recent financial performance has been good, making it one of the top ten railroad companies to purchase in 2022. Jennifer Hamann, UNP's CFO, is upbeat about the company's rail lines, which are currently averaging around 157,000 7-day carloadings, having surpassed the 160,000 mark in April. In addition, the corporation announced the opening of a new intermodal terminal in Southern California, a key import distribution zone. In the first quarter of 2021, Union Pacific Corporation (NYSE: UNP) recorded a net income of $1.3 billion, or $2.00 per diluted share, compared to $1.5 billion, or $2.15 per diluted share, in the first quarter of 2020. As of April 2022, Union Pacific Corporation has a market cap of $153.97 Billion. This makes Union Pacific Corporation the world's 77th most valuable company by market cap with a share price of 245.06 USD per share. They paid $1.18 per share as a dividend to their shareholders in March of 2022.

CSX Corporation (NASDAQ: CSX) specializes in rail freight transportation, rail-to-truck transfers, and bulk commodity activities. Through a broad network of 30 ports, the organization also provides intermodal transportation services. CSX Corporation (NASDAQ: CSX) owns and operates a rail network with a total length of 19,500 miles. It is based in Jacksonville, Florida, and was created in 1978. Quality Carriers, Inc., the leading provider of bulk liquid chemicals truck transportation in North America, has recently announced that it has inked a deal to buy the company. According to CSX's most recent quarterly earnings report, the company's earnings per share fell 7% year over year to $0.93 in the first quarter of 2021. The company's future appears bright, with increased cash flow on the horizon, making it one of the top railroad stocks to purchase in 2022. As of April 2022, CSX Corporation has a market cap of $75.16 Billion. This makes CSX Corporation the world's 198th most valuable company by market cap with a share price of 34.41 USD per share. They paid $0.1 per share as a dividend to their shareholders in March of 2022.

The Canadian National Railway Company (NYSE: CNI) owns and maintains a rail network that stretches across the United States and Canada, totaling 19,500 route miles. It also runs ships and docks, as well as automobile logistics, transportation management, and freight forwarding. The company's headquarters are in Montreal, Canada, where it was formed in 1919. Over the last five years, long-term shareholders of Canadian National Railway Company (NYSE: CNI) have seen a 79 percent growth in share price. It is Canada's largest railroad firm, and it has remained at the top for many years, making it one of the best railroad stocks to buy right now. As of April 2022, Canadian National Railway has a market cap of $86.35 Billion. This makes Canadian National Railway the world's 168th most valuable company by market cap with a share price of 122.86 USD per share. They also paid $0.5797 per share as a dividend to their shareholders in March 2022.

Norfolk Southern Corporation (NYSE: NSC) is a Virginia-based railroad corporation that transports raw materials, intermediate products, and finished commodities across the United States by train. It also carries international freight and commuter passenger services through Atlantic and Gulf Coast ports. The corporation operates over 19,300 route miles in 22 states and the District of Columbia as of December 31, 2020. Norfolk Southern Corporation (NYSE: NSC) is predicted to boost earnings by 19.7% in the fiscal year 2021, making it an excellent buy. NSC recently completed a $500 million green bond issue to fund initiatives aimed at lowering the company's carbon footprint and assisting customers in lowering their supply chain emissions.  Norfolk Southern is the first Class I railroad in North America to issue green bonds, earning it a spot among the top five railroad stocks to invest in for 2022. As of April 2022, Norfolk Southern has a market cap of $67.71 Billion. This makes Norfolk Southern the world's 231st most valuable company by market cap with a share price of 258.72 USD per share. They paid $1.24 per share as a dividend to their shareholders in February 2022.

Kansas City Southern (NYSE: KSU) is a transportation holding corporation based in North America that provides domestic and international rail transportation. The company's headquarters are in Kansas City, where it was founded in 1887. It has a rail network that stretches from the Midwest of the United States to the south of Mexico, covering over 7100 route miles. The railroad company Kansas City Southern (NYSE: KSU) is well-known. Kansas City Southern (NYSE: KSU) and Canadian Pacific Railway Limited (NYSE: CP) have announced a merger to form the first rail network connecting the United States, Canada, and Mexico. This rail network will be the first to connect the three countries and will give a competitive alternative to existing rail service providers. As of April 2022, Kansas City Southern has a market cap of $26.71 Billion. This makes Kansas City Southern the world's 711th most valuable company by market cap with a share price of 298.64 USD per share. They also paid $0.54 per share as a dividend to their shareholders in January 2022.

Railroad stocks have proven to be stable investments in the past years and they are on track to remain solid during this economic turmoil. UNPC, CSX, KSU, and co, pay good dividends and they are good investment vehicles.