Top Railroad Stocks for Q4 2021

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CP.TO, CSX, and GBX are apical for value, growth, and momentum, respectively

Updated September 14, 2021

The railroad manufacture is 1 of the large components of the transportation assemblage and is intimately tied to the economy's growth. Railroad companies run immense networks that transport cultivation products, packaged foods, commodities, electronics, and different goods to companies and consumers. Major companies successful the manufacture see Union Pacific Corp. (UNP), Norfolk Southern Corp. (NSC), and CSX Corp. (CSX).

The railroad manufacture does not person its ain benchmark, but arsenic a portion of the broader proscription assemblage its show tin beryllium reasonably approximated by the iShares Transportation Average ETF (IYT). IYT has underperformed the broader marketplace with a full instrumentality of 26.0% implicit the past 12 months, beneath the Russell 1000's full instrumentality of 37.1%. These show figures and each others beneath are arsenic of Sept. 10, 2021.

Here are the apical 3 railroad stocks with the champion value, the fastest growth, and the astir momentum.

Best Value Railroad Stocks

These are the railroad stocks with the lowest 12-month trailing price-to-earnings (P/E) ratio. Because profits tin beryllium returned to shareholders successful the signifier of dividends and buybacks, a debased P/E ratio shows you’re paying little for each dollar of nett generated.

Best Value Railroad Stocks

	Price ($)	Market Cap ($B)	12-Month Trailing P/E 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 Corp. (NSC)	247.15	61.0	22.9

Source: YCharts

Canadian Pacific Railway Ltd.: Canadian Pacific Railway is simply a Canada-based institution that offers obstruction proscription services, including intermodal shipping, obstruction siding construction, and logistics services. The institution has been embroiled successful a bidding warfare with Canadian National Railway Co. (CNR.TO). regarding a imaginable merger with Kansas City Southern (see below). On Sept. 12, Kansas City Southern announced it planned to judge Canadian Pacific's $27.2 cardinal cash-and-stock acquisition offer. Canadian National Railway Co. has until Sept. 17 to taxable a amended offer.
CSX Corp.: CSX provides obstruction transportation across 23 States, the District of Columbia, and Ontario and Quebec. CSX's web has implicit 20,000 miles of way with entree to much than 70 ocean, river, and water larboard terminals.
Norfolk Southern Corp.: Norfolk Southern is simply a obstruction proscription institution operating chiefly successful the Southeast, East, and Midwest. The institution transports earthy materials, intermediate products, and finished goods. Through agreements with different carriers, it besides provides work passim the U.S., arsenic good arsenic transport of overseas freight.

Fastest Growing Railroad Stocks

These are the apical railroad stocks arsenic ranked by a growth model that scores companies based connected a 50/50 weighting of their astir caller quarterly YOY percentage revenue growth and their astir caller quarterly YOY earnings-per-share (EPS) growth. Both income and net are captious factors successful the occurrence of a company. Therefore ranking companies by lone 1 maturation metric makes a ranking susceptible to the accounting anomalies of that 4th (such arsenic changes successful taxation instrumentality oregon restructuring costs) that whitethorn marque 1 oregon the different fig unrepresentative of the concern successful general. Companies with quarterly EPS oregon gross maturation of implicit 2,500% were excluded arsenic outliers.

Fastest Growing Railroad Stocks

	Price ($)	Market Cap ($B)	EPS Growth (%)	Revenue Growth (%)
CSX Corp. (CSX)	30.95	69.8	136.4	32.6
Norfolk Southern Corp. (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: YCharts

CSX Corp.: See institution statement above.
Norfolk Southern Corp.: See institution statement above.
Canadian Pacific Railway Ltd.: See institution statement above.

Railroad Stocks with the Most Momentum

These are the railroad stocks that had the highest full instrumentality implicit the past 12 months.

Railroad Stocks with the Most Momentum

	Price ($)	Market Cap ($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	N/A	N/A	37.1
iShares Transportation Average ETF (IYT)	N/A	N/A	26.0

Source: YCharts

Greenbrier Companies Inc.: Greenbrier Companies is chiefly engaged successful the design, manufacture, and selling of railroad freight car equipment. The institution manufactures some railcars and marine vessels, provides repair and refurbishment for intermodal and accepted railcars, and provides complementary leasing and services. On Aug. 26, the institution announced that it had received caller orders totaling 5,500 units valued astatine much than $530 cardinal since the commencement of its Q4 FY 2021 connected June 1, 2021.
Kansas City Southern: Kansas City Southern is simply a holding institution that, done its subsidiaries, operates a railroad strategy providing shippers with freight services successful commercialized and concern markets successful the U.S. and Mexico. See supra for details of the projected merger betwixt Kansas City Southern and Canadian Pacific Railway. In Q2 2021 ended June 30, the institution reported a $378.6 cardinal nett nonaccomplishment attributable to KSU and subsidiaries, contempt a 37% summation successful revenue.
Trinity Industries Inc.: Trinity Industries is simply a diversified concern company. It produces railcars and related parts and provides leasing, management, and attraction services for railcars. Additionally, Trinity besides offers road products, inland barges, and upwind towers.

The comments, opinions and analyses expressed herein are for informational purposes lone and should not beryllium considered idiosyncratic concern proposal oregon recommendations to put successful immoderate information oregon to follow immoderate concern strategy. While we judge the accusation provided herein is reliable, we bash not warrant its accuracy oregon completeness. The views and strategies described connected our contented whitethorn not beryllium suitable for each investors. Because marketplace and economical conditions are taxable to accelerated change, each comments, opinions, and analyses contained wrong our contented are rendered arsenic of the day of the posting and whitethorn alteration without notice. The worldly is not intended arsenic a implicit investigation of each worldly information regarding immoderate country, region, market, industry, investment, oregon strategy.

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