10 Best Railroad Stocks To Buy According To Billionaires

2. Union Pacific Corporation (NYSE:UNP)

Number of Billionaire Investors: 14

Stake Value of Billionaire Holdings: $2,170,498,974

Headquartered in Omaha, Nebraska, Union Pacific Corporation (NYSE:UNP) provides transportation services across the US for products like grain, fertilizers, coal, food, chemicals, and automobiles, as well as intermodal containers. On April 16, Redburn upgraded UNP from Neutral to Buy, setting a price target of $259. Union Pacific has improved service, trimmed its workforce, and raised cargo volumes, achieving a 55.6% profit margin and a $131.9 billion market cap. Redburn analysts expect a strong Q1 2025 performance.

For the first quarter of 2025, Union Pacific’s net income came in at $1.6 billion, and operating revenue was $6 billion, driven by a 7% increase in volume and solid pricing gains. Freight revenue was up 1%, and excluding fuel surcharges, it grew by 4%. The company saw improvements in several operational metrics, including a 6% increase in freight car velocity and a 9% rise in workforce productivity. This year, UNP aims for share repurchases between $4 billion and $4.5 billion.

According to Insider Monkey’s fourth quarter database, 14 billionaires held collective stakes worth over $2 billion in Union Pacific Corporation (NYSE:UNP). It is one of the best railroad stocks to buy according to billionaires.