10 Best Railroad Stocks To Buy According To Billionaires

4. Westinghouse Air Brake Technologies Corporation (NYSE:WAB)

Number of Billionaire Investors: 13

Stake Value of Billionaire Holdings: $890,051,120

Westinghouse Air Brake Technologies Corporation (NYSE:WAB) offers technology and services for the rail and transit industries worldwide. WAB offers a variety of products, including locomotives powered by diesel-electric or LNG, braking systems, and railway electronics. The company also supplies equipment for freight cars, HVAC systems, and industrial IoT solutions. It ranks 4th on our list of the best railroad stocks.

On April 10, JPMorgan started coverage of Westinghouse Air Brake Technologies Corporation (NYSE:WAB) with a Neutral rating and a price target of $175. According to JPMorgan, WAB is valued at 20 times its expected earnings, matching the market average. The company excels in freight locomotives, railcar tech, and aftermarket services, with 60% of its revenue from services. However, analysts are cautious due to potential economic challenges like a US recession and inflation from tariffs.

WAB reported Q1 2025 results that exceeded expectations. The company reported GAAP earnings per share of $1.88 for the first quarter, up 22.9% from last year, and adjusted EPS of $2.28, marking a 20.6% increase. Sales came in at $2.61 billion, with cash from operations clocking in at $191 million. Both the Freight and Transit segments saw growth, contributing to a 4.5% overall sales increase. Wabtec ended the quarter with $698 million in cash and $4.01 billion in debt, maintaining strong liquidity. The company also returned $43 million to shareholders through dividends and repurchased $98 million in shares.

According to Insider Monkey’s Q4 data, Westinghouse Air Brake Technologies Corporation (NYSE:WAB) was found in 13 billionaire portfolios. Billionaire Tom Steyer’s hedge fund held a $271 million stake in WAB.