10 Best Railroad Stocks To Buy Now

8. Trinity Industries, Inc. (NYSE:TRN)

Number of Hedge Fund Holders: 20

Trinity Industries, Inc. (NYSE:TRN) offers rail transportation products and services in North America. It has two main divisions, one for leasing and managing railcars and another for manufacturing and servicing them. On December 5, 2024, the company raised its quarterly dividend to $0.30 per share, up from $0.28 in the last quarter. This marks the company’s 243rd consecutive dividend payment. The cash dividend was distributed on January 31, 2025, to shareholders on record as of January 15. TRN is one of the best railroad stocks to watch out for.

Trinity Industries, Inc. (NYSE:TRN) had strong financials in 2024, with adjusted EPS rising 32% to $1.82, driven by higher lease rates, improved margins, and increased external repairs. The Railcar Leasing and Services Group ended the year with a 10% revenue increase, repricing over half its fleet at higher rates while maintaining strong utilization. In 2025, Trinity anticipates approximately 35,000 railcar deliveries, $300-$400 million in net fleet investment, $45-$55 million in capital expenditures, and EPS between $1.50 and $1.80.

Among the hedge funds tracked by Insider Monkey, 20 funds were bullish on Trinity Industries, Inc. (NYSE:TRN) in Q4 2024, compared to 22 funds in the prior quarter. Encompass Capital Advisors was the leading stakeholder of the company, with nearly 2 million shares worth $70 million.