In this article, we look at the 10 Best Railroad Stocks to Invest In According to Billionaires.
Railroads entered the second half of 2026 with a steadier volume backdrop than the sector had earlier in the cycle. According to the Association of American Railroads, June extended the improvement seen through much of the year, with weekly average intermodal volume reaching a new monthly record and average weekly carloads hitting their highest level since May 2021. AAR also said total carloads rose year over year for the sixth straight month, intermodal volume rose for the fifth straight month, and 14 of the 20 major carload categories posted gains.
The weekly data show the same pattern. For the week ending June 27, U.S. railroads handled 525,474 carloads and intermodal units, up 7.0% from the same week last year. Through the first 25 weeks of the year, combined U.S. rail traffic was up 3.3%, while North American rail volume was up 2.7%. The sector still faces the usual freight-cycle pressure from industrial demand, fuel costs, regulation, and shipper negotiations. Still, the recent traffic data suggest that railroads entered midyear with firmer volumes across both merchandise and intermodal categories, giving investors a clearer operating backdrop than the sector had during weaker freight periods.
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Methodology
For this article, we reviewed Insider Monkey’s database of billionaire holdings for Q1 2026 and picked railroad operators, rail equipment companies, and railcar leasing or manufacturing companies with the highest number of billionaire investors holding the stock. The stocks are ranked in ascending order based on billionaire-holder count.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Insider Monkey’s quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 599.2% since May 2014, beating its benchmark by 372 percentage points (see more details here).
10. FreightCar America Inc. (NASDAQ:RAIL)
FreightCar America Inc. (NASDAQ:RAIL) is one of the Best Railroad Stocks to Invest In According to Billionaires. As of Q1 2026, 10 billionaires held the stock. On July 6, the company announced a multi-year order for 1,900 railcars from a key customer, with deliveries scheduled through 2028. It also said second-quarter orders totaled about 3,000 railcars, valued at roughly $300 million, with demand across every core market segment.
For a railcar manufacturer, that is a cleaner signal than soft promotion because it points to backlog visibility, customer repeat activity, and a broader order base. The update also fits the railroad-stock theme through the equipment cycle: freight operators and shippers need available cars before traffic growth can turn into revenue. FreightCar is still a smaller, more cyclical name than the Class I railroads, but the July order update gives the story a concrete operating hook rather than a vague recovery narrative.
FreightCar America Inc. (NASDAQ:RAIL) designs, produces, and supplies railroad freight cars, railcar parts, and components, and also provides railcar repair, rebody, and conversion services.
9. GATX Corporation (NYSE:GATX)
GATX Corporation (NYSE:GATX) is one of the Best Railroad Stocks to Invest In According to Billionaires. As of Q1 2026, 10 billionaires held the stock. On July 1, Fitch affirmed GATX’s ratings at BBB+/F2 with a Stable Outlook, keeping the focus on the company’s balance-sheet strength after a major expansion of its rail-leasing base.
The rating action followed a first quarter in which Rail North America fleet utilization remained high at 98.1%, while the company’s Lease Price Index was 22.3%. GATX also said the integration of the Wells Fargo rail operating lease portfolio was progressing, after the acquisition added scale to its long-lived railcar fleet. The angle here is less about headline rail traffic and more about asset utilization. Railcar leasing companies benefit when customers keep equipment working, lease renewals hold up, and secondary-market values remain firm. That makes GATX a steadier rail-adjacent name within the broader railroad group.
GATX Corporation (NYSE:GATX) leases transportation assets, including railcars, aircraft spare engines, and tank containers, through rail and related asset-leasing businesses.
8. Trinity Industries Inc. (NYSE:TRN)
Trinity Industries Inc. (NYSE:TRN) is one of the Best Railroad Stocks to Invest In According to Billionaires. As of Q1 2026, 11 billionaires held the stock. On June 3, TrinityRail Global joined Touax Group and Texmaco Rail & Engineering in a railcar leasing joint venture in India called TTRL. The partnership brings together a North American railcar lessor and manufacturer, a European railcar lessor, and an Indian rail manufacturer in a single operating platform.
The development is relevant because Trinity’s rail exposure is not limited to selling new cars into a single domestic cycle. Leasing, maintenance, lifecycle services, and international freight equipment demand all feed into the same rail asset base. The India angle also gives the company a long-term freight-market extension without forcing the story into a pure Class I railroad frame. For a stock in this list, that matters because billionaire interest is attached to a rail-equipment platform rather than a traditional railroad operator.
Trinity Industries Inc. (NYSE:TRN), through its TrinityRail platform, provides railcar leasing and management services, railcar manufacturing, maintenance and modification services, railcar logistics products, and railcar components.
7. Greenbrier Companies Inc. (NYSE:GBX)
Greenbrier Companies Inc. (NYSE:GBX) is one of the Best Railroad Stocks to Invest In According to Billionaires. As of Q1 2026, 11 billionaires held the stock.
On July 1, Greenbrier reported third-quarter results that showed a mixed but useful picture for rail equipment. Aggregate gross margin improved 230 basis points sequentially to 14.1%, while the owned lease fleet grew 23% sequentially to 20,600 units. Lease fleet utilization remained strong at 99%, and the company received new railcar orders for 2,200 units valued at $340 million. Its backlog stood at 13,800 units with an estimated value of $2.0 billion as of May 31. That is the kind of update that works for a railroad-stock list because it links railcar manufacturing, leasing, and replacement demand within a single business. Greenbrier is not a Class I rail operator, but its order book and leasing utilization are closely tied to freight rail capital spending and shippers’ equipment needs.
Greenbrier Companies Inc. (NYSE:GBX) supplies equipment and services to global freight transportation markets, including railcar manufacturing, leasing, fleet management, maintenance, parts, and related railcar services.
6. Canadian Pacific Kansas City Limited (NYSE:CP)
Canadian Pacific Kansas City Limited (NYSE:CP) is one of the Best Railroad Stocks to Invest In According to Billionaires. As of Q1 2026, 12 billionaires held the stock.
On July 7, CPKC said it set new June monthly grain records in both Canada and the United States. The company moved 2.8 million metric tonnes of Canadian grain and grain products in June, beating the previous June record from 2020, and said the second quarter also set records for Canadian grain tonnage and carloads. In the United States, CPKC moved 2.5 million metric tonnes of grain in June and 7.5 million metric tonnes in the second quarter, both records for those periods. This is a directly relevant rail operating story because grain is a core bulk commodity for the network. It also shows the value of CPKC’s cross-border rail footprint when agricultural volumes are strong, especially since the company’s system links Canada, the United States, and Mexico under a single operator.
Canadian Pacific Kansas City Limited (NYSE:CP) operates a single-line transnational freight railway linking Canada, the United States, and Mexico, with access to major ports and key North American markets.
5. Westinghouse Air Brake Technologies Corporation (NYSE:WAB)
Westinghouse Air Brake Technologies Corporation (NYSE:WAB) is one of the Best Railroad Stocks to Invest In According to Billionaires. As of Q1 2026, 20 billionaires held the stock. On July 8, Stephens resumed coverage of Wabtec with an Overweight rating and a $320 price target. The firm said the transport cycle was broadly improving and saw more fundamental upside than downside, with momentum potentially carrying into 2027. Stephens also said rising earnings could continue to command historically elevated valuation multiples.
Wabtec’s business gives it exposure to both new rail equipment and the aftermarket. According to its 2025 annual report, the company has an installed base of nearly 24,600 locomotives. Wabtec said this base creates aftermarket opportunities in replacement parts, technology upgrades, maintenance, overhauls, and modernization work. The company also noted that customers often look to original equipment suppliers for safety- and performance-related parts and upgrades. This gives Wabtec a revenue base tied not only to new locomotive deliveries but also to equipment already operating across global rail networks.
Westinghouse Air Brake Technologies Corporation (NYSE:WAB), commonly known as Wabtec, provides equipment, systems, digital solutions, and value-added services for freight rail, transit rail, mining, marine, and industrial markets.
4. Canadian National Railway Company (NYSE:CNI)
Canadian National Railway Company (NYSE:CNI) is one of the Best Railroad Stocks to Invest In According to Billionaires. As of Q1 2026, 22 billionaires held the stock. On July 3, CNI said it set a new monthly grain movement record across its network, moving 2.67 million metric tonnes of grain from Western Canada in June. That surpassed the previous June record of 2.64 million metric tonnes set in 2020. The company said the result showed strong customer demand, supply-chain coordination, and operational flexibility despite heavy rainfall in parts of Western Canada.
The update is a clean railroad story because it concerns actual tonnage moved, not a branding exercise or distant capital plan. Grain traffic is also a useful test of network capacity because it depends on coordination between producers, elevators, rail crews, ports, and export customers. For CNI, the record adds a current operating data point to a large North American rail network already watched by institutional investors.
Canadian National Railway Company (NYSE:CNI) transports natural resources, manufactured products, and finished goods across North America through a rail network of nearly 20,000 route miles and related transportation services.
3. CSX Corporation (NASDAQ:CSX)
CSX Corporation (NASDAQ:CSX) is one of the Best Railroad Stocks to Invest In According to Billionaires. As of Q1 2026, 23 billionaires held the stock. On June 25, Barclays raised its price target on CSX to $55 from $47 and maintained an Overweight rating. The firm said solid U.S. and international freight demand, reduced transportation capacity, higher U.S. imports, and firmer core freight pricing could support stronger earnings and outlooks across the sector.
Citi echoed that freight-cycle thesis on July 9, lifting its CSX price target to $53 from $46 while retaining a Neutral rating. The firm said second-quarter earnings for transportation companies could be among the strongest in years as tighter capacity combines with moderately improving demand. Together, the notes point to a more supportive pricing and demand environment for CSX, but their differing ratings indicate that the firms do not share the same degree of conviction in the stock. Barclays sees sufficient upside for an Overweight rating, while Citi raised its valuation without adopting a more bullish recommendation.
CSX Corporation (NASDAQ:CSX) provides rail-based freight transportation services, including traditional rail service and intermodal container and trailer transportation, across the eastern United States and parts of Canada.
2. Union Pacific Corporation (NYSE:UNP)
Union Pacific Corporation (NYSE:UNP) is one of the Best Railroad Stocks to Invest In According to Billionaires. As of Q1 2026, 24 billionaires held the stock. On July 7, Union Pacific and Norfolk Southern told the Surface Transportation Board that they were willing to divest ownership stakes in smaller railroads as part of their proposed $85 billion merger. Reuters reported that the transaction would create the first U.S. coast-to-coast freight rail operator if approved.
The companies said they would not control the Terminal Railroad Association of St. Louis, the Kansas City Terminal Railway, or the TTX Company after the merger and would divest ownership interests if directed by regulators. For Union Pacific, the filing keeps attention on network structure, regulatory approval, and the potential to reduce interchange delays across key freight hubs. The risks remain real because shippers, state attorneys general, and rival railroads have raised concerns. Still, this filing is the most consequential fresh development around the stock.
Union Pacific Corporation (NYSE:UNP) operates a major freight railroad network across the western United States, serving agricultural, automotive, chemicals, energy, industrial, and intermodal markets.
1. Norfolk Southern Corporation (NYSE:NSC)
Norfolk Southern Corporation (NYSE:NSC) is one of the Best Railroad Stocks to Invest In According to Billionaires. As of Q1 2026, 24 billionaires held the stock.
On July 7, Norfolk Southern and Union Pacific submitted the first portion of their responses to the Surface Transportation Board’s request for supplemental information tied to their accepted merger application. The same day, Reuters reported that the railroads were willing to divest ownership stakes in smaller railroads as part of the proposed $85 billion deal. For Norfolk Southern, the development matters because the company is at the center of a proposed transaction that could reshape the U.S. freight rail map by linking the eastern and western networks under a single operator. The filing also keeps regulatory scrutiny firmly in view, including shipper concerns about rates and competition. Separately, on June 1, Norfolk Southern appointed Brian Barr as Chief Operating Officer, adding an operational leadership update to a month dominated by merger-related developments.
Norfolk Southern Corporation (NYSE:NSC) operates a freight railroad network in the eastern United States, moving merchandise, intermodal, and bulk freight across major industrial and consumer markets.
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