5 Best Railroad Stocks To Buy Now

1. Union Pacific Corporation (NYSE:UNP)

Number of Hedge Fund Holders: 85

Union Pacific Corporation (NYSE:UNP) is a railroad company in the United States, providing transportation services for grain products, fertilizers, food and refrigerated products, coal, petroleum, construction products, industrial chemicals, plastics, forest products, and automobiles. Union Pacific Corporation (NYSE:UNP) is one of the best railroad stocks to invest in. 

Union Pacific Corporation (NYSE:UNP) achieved better-than-expected financial results in the first quarter of 2023. Despite a minor setback in terms of efficiency, the company reported earnings per share of $2.67, surpassing the Street consensus of $2.57. Additionally, Union Pacific Corporation (NYSE:UNP)’s revenue of $6.06 billion exceeded market expectations and increased 3.4% year-over-year.  

According to Insider Monkey’s first quarter database, 85 hedge funds were long Union Pacific Corporation (NYSE:UNP), compared to 83 funds in the earlier quarter. John Overdeck and David Siegel’s Two Sigma Advisors is a prominent stakeholder of the company, with 2.15 million shares worth $433.7 million. 

Matrix Asset Advisors made the following comment about Union Pacific Corporation (NYSE:UNP) in its Q1 2023 investor letter:

“During the quarter we added a new position in Union Pacific Corporation (NYSE:UNP). Union Pacific (UNP) is the 2nd largest railroad network in the United States just behind Burlington Northern Santa Fe. The firm operates in the Western, Midwestern, and Southern portions of the United States. 90% of UNP sales come from the US and 10% from Mexico. Over the past decade, railroads gained market share from the trucking industry because it costs 10-40% less to ship via rails than trucks. The company has a long history of consistent operating growth and profitability. The shares fell from a high of $278 in May of 2022 after the firm experienced operating challenges due to a slower macro environment and higher expenses.”

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