5 Best Railroad Stocks To Buy Now

4. Norfolk Southern Corporation (NYSE:NSC)

Number of Hedge Fund Holders: 51

Norfolk Southern Corporation (NYSE:NSC) was incorporated in 1980 and is headquartered in Atlanta, Georgia. The company specializes in the rail transportation of raw materials, intermediate goods, and finished products in the United States. It is one of the top railroad stocks to invest in. On April 26, Norfolk Southern Corporation (NYSE:NSC) reported a Q1 non-GAAP EPS of $3.32, beating market consensus by $0.17. While the revenue of $3.1 billion increased 6.9% year-over-year, it fell short of Wall Street estimates by $10 million. 

According to Insider Monkey’s first quarter database, 51 hedge funds were bullish on Norfolk Southern Corporation (NYSE:NSC), compared to 43 funds in the prior quarter. Ken Griffin’s Citadel Investment Group is the biggest stakeholder of the company, with 1.65 million shares worth approximately $352 million. 

The London Company Large Cap Strategy made the following comment about Norfolk Southern Corporation (NYSE:NSC) in its first quarter 2023 investor letter:

“Norfolk Southern Corporation (NYSE:NSC) – NSC was a significant underperformer this quarter reflecting weaker than expected quarterly earnings and news of a train derailment in Ohio. Fortunately, there were no fatalities related to the derailment, but there was environmental damage. Historically, the financial impact from train derailments have been relatively small and NSC’s insurance coverage could help cushion the blow. We believe NSC will emerge from this relatively unscathed, but will have to reinforce some of their network due to changes made from precision scheduled railroading efforts.”