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.
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.
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