10 Best Railroad Stocks To Buy Now

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

Number of Hedge Fund Holders: 72

Ranking 3rd on our list of the best railroad stocks is Westinghouse Air Brake Technologies Corporation (NYSE:WAB). WAB is an industry leader in rail technology, providing diesel-electric and LNG-powered locomotives, braking systems, train control tech, and railway electronics. On February 13, Susquehanna maintained a Positive rating on WAB and trimmed the price target from $222 to $218. Despite concerns over slowing revenue growth and a cost-focused five-year plan, Susquehanna sees an opportunity for the company to exceed expectations by 2026.

In Q4 2024, Westinghouse Air Brake Technologies Corporation (NYSE:WAB) reported GAAP earnings of $1.23 per share and adjusted EPS of $1.68, up 2.5% and 9.1% from the prior-year quarter, respectively. Sales for the quarter were $2.58 billion, and cash flow came in at $723 million. The company returned $1.2 billion to shareholders in 2024 and raised its dividend by 25%, while also expanding its share buyback program by $1 billion.

According to Insider Monkey’s fourth quarter database, 72 hedge funds were bullish on Westinghouse Air Brake Technologies Corporation (NYSE:WAB), compared to 54 funds in the earlier quarter. Select Equity Group held the biggest stake in the company, with over 5 million shares worth $974.2 million.