In this article, we explore the 10 Best Railroad Stocks to Buy According to Analysts.
The United States and Canada, two countries that form the North American region, have been running on railroads for nearly 200 years. Railroad emerged as an industry in the late 1820s and still supports the region’s economy to date. The US in particular has nearly 140,000 route miles of freight logistics network, which moves about 28% of all domestic freight by ton-miles. It is also widely considered the world’s largest, safest, and most cost-efficient freight system, per the Federal Railroad Administration, or FRA. The FRA also notes that the nearly $80 billion industry is anchored by seven Class I railroads alongside more than 600 regional and short-line operators. This transportation network is supported by the railcar sector, which brings together the manufacturing, leasing, and maintenance of the rolling stock that keeps North American supply chains moving.
Data from the Association of American Railroads, or AAR, indicates that rail volumes increased markedly in 2025. For the week ended May 10, total US rail traffic rose 5.7% year over year, the data shows. That momentum extended into early 2026, where the total US carloads averaged 224,737 per week in February. In fact, noted AAR in this March’s Rail Industry Overview, this is the most carload for any February since 2019 and up 6.5% over the same period last year. The number of railcars in storage also fell by nearly 18,000 that month, their first decline in six months. According to AAR, this is evidence that freight demand may be strengthening enough to pull idled equipment back into service.
However, not all signals are positive. For instance, a December 2025 Reuters investigation found that US freight railroads emitted approximately 485,000 tons of nitrogen oxides in 2024. This surpassed the combined output of all coal-fired power plants in the country. The underlying cause is an aging locomotive fleet with an average age now approaching 28 years, up from roughly 20 years in 2000, said Reuters. The analysis added that the EPA estimates rail pollution contributes to approximately 3,100 premature deaths and $48 billion in annual healthcare costs. This is a liability that both regulators and lawmakers are increasingly focused on, Reuters stated.
Yet the economic catalysts for rail’s next growth phase are firming. For starters, the ISM Manufacturing PMI reached 52.4% in February, which is its second straight month above the 50% expansion threshold. The PMI exceeded this level only once in the prior 38 months. The other catalyst is that the US manufacturing output in January hit its highest point since October 2022, according to the AAR’s March 2026 overview. Also, the USDA has projected record US corn exports this year, which will add a direct tailwind for grain-related rail volumes.
The bottom line is that freight demand is strengthening and manufacturing activity is stirring back to life. Don’t forget key macroeconomic indicators that are showing more support than before. Against this background, investors may want to take a closer look at the railroad stocks analysts believe are best positioned to capitalize on the industry’s next phase of growth.
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Our Methodology
To compile our list, we used financial media sources and transportation ETFs with significant exposure to the rail sector, including the iShares US Transportation ETF (IYT) and the SPDR S&P Transportation ETF (XTN), to build an initial pool of railroad operators and railcar companies listed in the United States. From this pool, we filtered for stocks with a positive analyst consensus upside potential as of March 18, 2026. We also considered institutional interest in each stock using hedge fund holdings data from Insider Monkey’s 13F database, as of Q4 2025. The final list is ranked in ascending order based on upside potential.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research shows we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).
Best Railroad Stocks to Buy According to Analysts
10. CSX Corporation (NASDAQ:CSX)
Stock Upside: 1.72%
Number of Hedge Fund Holders: 75
CSX Corporation (NASDAQ:CSX) is one of the best railroad stocks to buy according to analysts. On March 17, Maryclare Kenney, Chief Commercial Officer of CSX Corporation (NASDAQ:CSX), presented at the JPMorgan Industrials Conference, where she laid out the company’s near-term challenges, its resilience strategy, and key growth projects.
Kenney opened by addressing recent weather-related disruptions to CSX’s network. She stated that the company is investing in network resiliency to ensure faster recovery and sustained service reliability. This is because, as she emphasized, shippers only choose rail over trucks when they trust the service to be consistent, not just good occasionally.
Kenney stated that on the demand side, CSX entered 2026 expecting a flat industrial production environment, and that view has not changed. She noted that the company faces two major headwinds: the housing and automotive markets, where mill and plant closures that began in 2025 are still dragging on volumes. This is a weight Kenney said CSX expects to carry through Q3 2026 as it laps those closures. Aluminum shortages in the automotive supply chain are adding to that pressure, she added.
On the brighter side, Kenney stated that US infrastructure investment is lifting demand for aggregates and cement, and that this is flowing through CSX’s minerals segment. However, she added a caveat that this segment is a lower revenue-per-unit category compared to chemicals and forest products.
CSX Corporation (NASDAQ:CSX) is a US freight rail company. It operates more than 21,000 route miles across 23 states, the District of Columbia, and two Canadian provinces. It transports coal, chemicals, agricultural products, automobiles, and consumer goods.
9. The Greenbrier Companies, Inc. (NYSE:GBX)
Stock Upside: 5.42%
Number of Hedge Fund Holders: 30
The Greenbrier Companies, Inc. (NYSE:GBX) is one of the best railroad stocks to buy according to analysts. On February 4, Greenbrier Companies, Inc. (NYSE:GBX) completed a $300 million railcar asset-backed securities (ABS) offering through GBX Leasing 2022-1 LLC. GBX Leasing is the company’s indirect wholly-owned special purpose subsidiary. The company issued Series 2026-1 Class A and B Notes to secure long-term financing for its leasing business.
The Notes carry a blended interest rate of 5.2% and feature a 2.5-year call provision. They also have weighted average lives of about 6.7 years for the Class A Notes and seven years for the Class B Notes. According to the company, the securities received ratings of “AA” and “A” from S&P Global Ratings.
The company detailed that the ABS issuance is secured by railcars and associated operating leases from its leasing fleet. This fleet consists of over 17,000 railcars originating primarily from the company’s manufacturing operations.
Although the securitization will be consolidated on Greenbrier’s balance sheet for accounting purposes, the debt is non-recourse to the parent company. Put simply, Greenbrier is not liable for repayment beyond the pledged collateral. Proceeds from the offering will support Greenbrier’s leasing business and recurring revenue stream.
Lorie L. Tekorius, Greenbrier’s CEO and President, noted that the strong investor demand signals confidence in the durability of the company’s manufacturing platform. The enthusiasm also aligns with the company’s disciplined long‑term strategy to grow the leasing business, Tekorius said.
The Greenbrier Companies, Inc. (NYSE:GBX) is an American transportation manufacturing corporation. It designs, builds, refurbishes, and leases freight railcars. This includes tank cars, boxcars, gondolas, and intermodal equipment, with operations across North America, South America, Europe, and parts of Asia.
