5 Best Railroad Stocks to Buy in 2021

2.  Canadian National Railway Company (NYSE: CNI)

Market Cap: $78.437 billion
Number of Hedge Fund Holders: 31

Canadian National Railway Company (NYSE: CNI) operates a network of 19,500 route miles of rail track spanning across the United States and Canada. It also operates vessels and docks, automotive logistics, transportation management services and freight forwarding services. The company was founded in 1919 and is headquartered in Montreal, Canada. Long term shareholders of Canadian National Railway Company (NYSE: CNI) have enjoyed a 79% share price increase over the past 5 years. It is the largest railroad company in Canada and has maintained its top position over the years making it one of the best railroad stocks to buy now. Despite reporting slightly weaker revenues in the first quarter of 2021, CNI is expecting strong growth for the whole year.

CN Rail earned $974 million or $1.37 per diluted share, down from $1.01 billion or $1.42 per share in the preceding year. Adjusted profits were reported to be $872 million or $1.23 per share, compared with $870 million or $1.22 per share in the first quarter of 2020 while revenue for the first quarter of 2021 totaled $3.54 billion. The company reported its recovery from a polar vortex in February with its terminal business up by 19%.

At the end of the fourth quarter of 2020, 31 hedge funds in the database of Insider Monkey held stakes worth $2.18 billion in CNI which is an increase from 26 hedge funds in the preceding quarter holding stakes worth $2.22 billion.