Are you looking for a list of railroad stocks? Since their creation, railroad companies have played an important role in the development of North America. In the last 200 years, we have built local and transcontinental railroads to transport goods from one ocean to another across states and borders.
Many things have changed on our lands, and these companies had to adapt. Today, many railroad companies trade on North American stock indexes.
They play an important role in our economy and our portfolios. Here is everything you need to know about railroad stocks trading in the US and Canada.
What Are Railroad Stocks? (Introduction)
Let’s begin with a quick history lesson about railroads in North America. In the early 1800s, railroads were simple horse-drawn cars running on tracks, primarily used for transporting freight. The Baltimore and Ohio Railroad was the first regular passenger and freight carrier, completed in 1827.
Dozens of local railroad networks had been established by 1835. By 1850, over 9,000 miles of track had been laid across the country. Larger companies were formed, such as the New York Central Railroad Company.
Shortly after the American Civil War in 1869, railroad usage increased significantly thanks to the first transcontinental railroad. By 1876, trains could run from New York to California in less than 4 days.
However, in the following decades, the rise of cars and planes led to a decline in rail usage. Many railroads faced financial difficulties, leading to bankruptcies and mergers.
In the 1980s, deregulation allowed for more efficient operations and improved profitability. Freight trains saw much growth, and high-speed projects reduced travel times.
Today, railroads remain an important factor in our economy and transportation. They help move various goods across the continent to some of the most remote places imaginable.
Best Railroad Stocks 2026
Many railroad companies are trading in the US and Canada. They transport freight, passengers, or both on a state, coast-to-coast, or continental level. As an industry, they must adapt to the Trump administration and the tariffs proposed to the neighboring countries. Let’s take a look at some of the best railroad stocks available.
Union Pacific Corporation (NYSE: UNP)
We begin with Union Pacific, which has thousands of miles of railroads across several states. Its revenue comes from long-haul freight transportation (agricultural, industrial, automotive, and chemical products). Its revenues come from logistics, supply chain management, and equipment rentals.
Union Pacific has invested billions in infrastructure improvements to enhance safety, reliability, and network performance.
Their stock has performed well in the last decade thanks to constant revenue and EPS increases. It has found ways to adapt to the decline in coal transportation, an important income source.
Investor Day outlines strategies each year to improve its margins and drive growth. Union Pacific has a strong market position and focuses on the right aspects of its business to remain one of the top railroad stocks for years.
Canadian Pacific Kansas City (NYSE: CP)
Next on the list is Canadian Pacific Kansas City, which was formed through the merger of Canadian Pacific Railway and Kansas City Southern (completed in April 2023). CP’s rail network spans approximately 20,000 miles across Canada, Mexico, and the US.
It is the only single-line rail corporation to connect all three countries, giving it a significant competitive advantage in the transportation sector. However, Trump’s tariffs might cause the company some serious headaches in the upcoming years.
CP’s operations include freight transportation across various industries. It has developed many storage systems to capitalize on new trading opportunities. The company has been an investor favorite for decades thanks to strong growth, solid metrics, and financial statements.
The merger’s full potential remains untapped because it is a complicated process to integrate two large rail networks. Despite this challenge, the company’s management is confident it will keep growing and deliver strong results for its shareholders.
Norfolk Southern Corporation (NYSE: NSC)
Next up on our list of railroad stocks is NSC, which operates 19,420 miles across 22 eastern states, with additional rights in Canada. Its primary business is transporting raw materials, intermediate products, and finished goods (coal, automotive, chemicals, metals, construction materials, agricultural commodities, and consumer products). It also uses other carriers’ rail systems to access the Atlantic and Gulf Coast ports.
SX Corporation (NASDAQ: CSX)
SX Corporation is another major freight transporter. The company operates over 21,000 miles of track and mainly transports chemicals, agricultural products, automotive goods, and coal. Unlike its previously mentioned peers, it had a disappointing recent quarter.
Its operating income and net income decreased, while its revenues were below estimates. CSX blamed decreased coal shipments and environmental factors (bridge collapse and two hurricanes) for this underperformance.
Despite these external challenges, CSX expects to rebound in the upcoming quarters. It actively invests in its infrastructure and constant share buybacks, which benefit its shareholders. Overall, it seems that CSX’s business isn’t as solid as its peers, but there is some potential.
Canadian National Railway Company (NYSE: CNI)
Let’s continue our list of railroad stocks with another Canadian company. CNR operates throughout Canada and in parts of the Midwestern and Southern US. It is Canada’s largest railway in revenue and network size (approximately 20,000 miles from coast to coast).
In 1995, it became a public company, transitioning from a government-owned corporation. Since then, it has strategically expanded North-South with the acquisition of the Illinois Central Railroad, giving it access to the Gulf of Mexico (Gulf of America now?).
Since an important portion of CNR’s business is in Canada, it has recently faced operational and environmental difficulties.
FreightCar America (NASDAQ: RAIL)
We conclude this list of railroad stocks with FreightCar, a manufacturer of freight cars for the railway industry since 1901. The company designs and produces various railcars that transport commodities and freight products across North America.
A few years ago, FreightCar was nearly a penny stock. Since the middle of 2024, it has turned its business around. FreightCar has improved its margins, cash position, and revenue, and adjusted its EBITDA.
IYT ETF Performance (2026 YTD)
| Year | Performance | 2026 (YTD) | +5.1% |
|---|---|
| 2025 | +5.1% |
| 2024 | +14.6% |
| 2023 | +16.2% |
| 2022 | -15.3% |
Final Thoughts on Railroad Stocks
To conclude our list of railroad stocks, they have been the backbone of our cross-country freight transportation needs for decades.
Today, we rely heavily on this industry to transport various products across state and country borders, coast to coast in North America.
Our train networks may seem slow compared to Europe and Asia, but companies are slowly modernizing them. It will still take some time, as our weather conditions (heavy snow, rain, and hurricanes) hinder any major advancements.
Frequently Asked Questions
In 2010, Warren Buffett bought and privatized the Burlington Northern Santa Fe (BNSF) Railway. It is the largest railroad company in North America by revenue, trackage, and number of employees. He doesn’t own any public railroad companies.
