5 Best Railroad Stocks to Buy in 2021

1. Union Pacific Corporation (NYSE: UNP)

Market Cap: $150.538 billion
Number of Hedge Fund Holders: 68

Union Pacific Corporation (NYSE: UNP) offers transportation services by railroad for agricultural products, coal and renewables, animal feeders, petroleum, industrial chemicals, metals and ores etc. As of  2020, its rail network included 32,313 route miles connecting Pacific Coast and Gulf Coast ports with the Midwest and eastern regions of the United States. The company was founded in 1862 and is headquartered in Omaha, Nebraska. The recent financial performance of Union Pacific Corporation (NYSE: UNP) despite the COVID-19 pandemic has been strong making it one of the 10 best railroad stocks to buy in 2021. The company’s CFO Jennifer Hamann is optimistic about UNP’s rail lines demand which is currently averaging around 157,000 7-day carloadings which has crossed the 160,000+ threshold in April. The company also announced the opening of a new intermodal terminal in Southern California which is an important import distribution region. Union Pacific Corporation (NYSE: UNP) reported a net income of $1.3 billion or $2.00 per diluted share in the first quarter of 2021 as compared to $1.5 billion or $2.15 per diluted share in 2020.

Vltava Fund, in their Q1 2021 investor letter, mentioned Union Pacific Corporation (NYSE: UNP). Here is what Vltava Fund has to say about Union Pacific Corporation in its letter:

“There was a slight change in Vltava Fund’s portfolio in the first quarter. We sold shares of Union Pacific. It was one of three stocks we bought a year ago at the market bottom. Although from a P/E viewpoint this was one of our most expensive purchases ever, the shares worked out quite well, and, when they were more than 90% higher at the beginning of this year, we decided to take profit and put the money into stocks with more attractive valuations.”

You can also take a peek at 10 Cheap Oil Stocks Under $10 and 10 Most Profitable Businesses in 2021.

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