When it comes to buying stocks, it can be hard to know which ones you should buy and which ones you should really leave alone. This is true with anything, but it’s especially true if you’re buying stocks in the railroad industry. Choosing to buy stocks in this industry can be a good idea because when done correctly, it can allow you to make a lot of money. The problem is that the industry, by its very nature, is extremely volatile. This is because much of it depends on the price of coal, oil and natural gas since those are three of the main things that are typically transported. When those prices drop, the value of the railroad as a whole also drops. With that being said, having some railroad stocks in your portfolio is usually a good idea. There’s no guarantee that you will actually make money off of them, but on the other hand, you can make a great deal of money when things are going your way.
Below is a list of five of the top railroad stocks that you might want to do more research on. These are at least worth taking a look at. Get some basic information here and then do your own research to decide if you want to purchase stock in any of these companies or not.
Kansas City Southern (KSU)
This is a railroad that serves the heartland of the United States as well as its southern region. If you were to purchase stock today, you would have to spend $106.27 per share. Over the last 12 months, the stock has been as low as $99.47 per share and as high as $114.91 per share. Currently, it’s trading down 7% but that could change in the blink of an eye. The fact that this is a railroad that has been in existence for several years and has had a rather consistent level of performance makes it worth taking a better look at.
Union Pacific Corporation (UNP)
This railroad has been operating consistently since 1862, giving it one of the longest histories in the field. It provides rail service throughout the western part of the United States. In fact, it actually serves about two-thirds of the country through 20 different states. All in all, the railroad owns about 32,000 miles of track and 9,000 locomotives. Currently, the market cap for this company is $96 billion. Its revenue for 2017 was $21.2 billion. Currently, the stock is down 9.5%, trading at $121.94. That means that if you were to sell stock in the company today, you would be making about $13.36 per share.
Canadian National Railway Company (CNI)
Despite its name, this railroad connects all the oceans in the United States with about 20,000 miles of tracks. It typically moves supplies like oil and natural gas, much like most railroads do. Its market cap is $54 billion and last year’s revenue was roughly $10 billion. It’s currently trading at $74.25 with earnings of $5.79.
CSX Corporation (CSX)
This is a railroad based in Florida that mostly serves the east coast of the United States. In fact, it’s the third largest railroad of its type with a market cap of $43.66 billion. Currently, it’s trading at $48.76, down 2%. With that being said, this is a company that has consistently been one of the best performers in the industry.
Norfolk Southern (NSC)
This railroad based in Norfolk, Virginia provides service to the southeast part of the United States, as well as the Midwest and eastern portion of the country. It operates just under 20,000 miles of railway and has a market cap of $37.64 billion. Last year’s revenue was $10.55 billion. The stock is currently trading at $135.48, up a dramatic 29% from this time last year.
As you can see, there is a lot of variation here but all of these companies have something to bring to the table. If you’re interested in diversifying your portfolio by including some railroad stocks, these are five that you probably want to take a much closer look at. While you might not decide to purchase stock in all of them, having one or two in your portfolio can make a big difference in the amount of money you can potentially make. That fact alone makes it worth taking the time to do some extra research.