5 Best Railroad Stocks to Buy in 2021

4. Norfolk Southern Corporation (NYSE: NSC)

Market Cap: $70.833 billion
Number of Hedge Fund Holders: 44

Norfolk Southern Corporation (NYSE: NSC) is a Virginia-based company that is involved in the transportation of raw materials, intermediate products, and finished goods by rail within the United States. It also transports overseas freight through Atlantic and Gulf Coast ports as well as commuter passenger services. As of December 31, 2020, the company operated approximately 19,300 route miles in 22 states and the District of Columbia. Norfolk Southern Corporation (NYSE: NSC) expected earnings growth year for fiscal year 2021 is 19.7% which makes it an ideal choice for investment.

Recently, NSC closed a $500 million green bond offering to fund investments in order to reduce the company’s carbon emissions and help customers reduce their supply chain emissions. Norfolk Southern is the first Class I railroad in North America to issue green bonds earning it a top spot in the 10 best railroad stocks to buy in 2021.  Over the past four quarters, the company has surpassed consensus EPS estimates four times. Its first quarter earnings in 2021 amounted to $2.66 per share as income from railway operations increased 7% year over year to $1.015 billion.