In this article, we will list the 5 Best Railroad Stocks to Invest In According to Billionaires. Please visit 10 Best Railroad Stocks to Invest In According to Billionaires if you’d like to see an extended list and the methodology behind it.
5. Westinghouse Air Brake Technologies Corporation (NYSE:WAB)
Westinghouse Air Brake Technologies Corporation (NYSE:WAB) is one of the Best Railroad Stocks to Invest In According to Billionaires. As of Q1 2026, 20 billionaires held the stock. On July 8, Stephens resumed coverage of Wabtec with an Overweight rating and a $320 price target. The firm said the transport cycle was broadly improving and saw more fundamental upside than downside, with momentum potentially carrying into 2027. Stephens also said rising earnings could continue to command historically elevated valuation multiples.
Wabtec’s business gives it exposure to both new rail equipment and the aftermarket. According to its 2025 annual report, the company has an installed base of nearly 24,600 locomotives. Wabtec said this base creates aftermarket opportunities in replacement parts, technology upgrades, maintenance, overhauls, and modernization work. The company also noted that customers often look to original equipment suppliers for safety- and performance-related parts and upgrades. This gives Wabtec a revenue base tied not only to new locomotive deliveries but also to equipment already operating across global rail networks.
Westinghouse Air Brake Technologies Corporation (NYSE:WAB), commonly known as Wabtec, provides equipment, systems, digital solutions, and value-added services for freight rail, transit rail, mining, marine, and industrial markets.
4. Canadian National Railway Company (NYSE:CNI)
Canadian National Railway Company (NYSE:CNI) is one of the Best Railroad Stocks to Invest In According to Billionaires. As of Q1 2026, 22 billionaires held the stock. On July 3, CNI said it set a new monthly grain movement record across its network, moving 2.67 million metric tonnes of grain from Western Canada in June. That surpassed the previous June record of 2.64 million metric tonnes set in 2020. The company said the result showed strong customer demand, supply-chain coordination, and operational flexibility despite heavy rainfall in parts of Western Canada.
The update is a clean railroad story because it concerns actual tonnage moved, not a branding exercise or distant capital plan. Grain traffic is also a useful test of network capacity because it depends on coordination between producers, elevators, rail crews, ports, and export customers. For CNI, the record adds a current operating data point to a large North American rail network already watched by institutional investors.
Canadian National Railway Company (NYSE:CNI) transports natural resources, manufactured products, and finished goods across North America through a rail network of nearly 20,000 route miles and related transportation services.
3. CSX Corporation (NASDAQ:CSX)
CSX Corporation (NASDAQ:CSX) is one of the Best Railroad Stocks to Invest In According to Billionaires. As of Q1 2026, 23 billionaires held the stock. On June 25, Barclays raised its price target on CSX to $55 from $47 and maintained an Overweight rating. The firm said solid U.S. and international freight demand, reduced transportation capacity, higher U.S. imports, and firmer core freight pricing could support stronger earnings and outlooks across the sector.
Citi echoed that freight-cycle thesis on July 9, lifting its CSX price target to $53 from $46 while retaining a Neutral rating. The firm said second-quarter earnings for transportation companies could be among the strongest in years as tighter capacity combines with moderately improving demand. Together, the notes point to a more supportive pricing and demand environment for CSX, but their differing ratings indicate that the firms do not share the same degree of conviction in the stock. Barclays sees sufficient upside for an Overweight rating, while Citi raised its valuation without adopting a more bullish recommendation.
CSX Corporation (NASDAQ:CSX) provides rail-based freight transportation services, including traditional rail service and intermodal container and trailer transportation, across the eastern United States and parts of Canada.
2. Union Pacific Corporation (NYSE:UNP)
Union Pacific Corporation (NYSE:UNP) is one of the Best Railroad Stocks to Invest In According to Billionaires. As of Q1 2026, 24 billionaires held the stock. On July 7, Union Pacific and Norfolk Southern told the Surface Transportation Board that they were willing to divest ownership stakes in smaller railroads as part of their proposed $85 billion merger. Reuters reported that the transaction would create the first U.S. coast-to-coast freight rail operator if approved.
The companies said they would not control the Terminal Railroad Association of St. Louis, the Kansas City Terminal Railway, or the TTX Company after the merger and would divest ownership interests if directed by regulators. For Union Pacific, the filing keeps attention on network structure, regulatory approval, and the potential to reduce interchange delays across key freight hubs. The risks remain real because shippers, state attorneys general, and rival railroads have raised concerns. Still, this filing is the most consequential fresh development around the stock.
Union Pacific Corporation (NYSE:UNP) operates a major freight railroad network across the western United States, serving agricultural, automotive, chemicals, energy, industrial, and intermodal markets.
1. Norfolk Southern Corporation (NYSE:NSC)
Norfolk Southern Corporation (NYSE:NSC) is one of the Best Railroad Stocks to Invest In According to Billionaires. As of Q1 2026, 24 billionaires held the stock.
On July 7, Norfolk Southern and Union Pacific submitted the first portion of their responses to the Surface Transportation Board’s request for supplemental information tied to their accepted merger application. The same day, Reuters reported that the railroads were willing to divest ownership stakes in smaller railroads as part of the proposed $85 billion deal. For Norfolk Southern, the development matters because the company is at the center of a proposed transaction that could reshape the U.S. freight rail map by linking the eastern and western networks under a single operator. The filing also keeps regulatory scrutiny firmly in view, including shipper concerns about rates and competition. Separately, on June 1, Norfolk Southern appointed Brian Barr as Chief Operating Officer, adding an operational leadership update to a month dominated by merger-related developments.
Norfolk Southern Corporation (NYSE:NSC) operates a freight railroad network in the eastern United States, moving merchandise, intermodal, and bulk freight across major industrial and consumer markets.
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