5 Best Railroad Stocks to Invest In

1. Union Pacific Corporation (NYSE:UNP)

Number of Hedge Fund Holders: 89

Union Pacific Corporation (NYSE:UNP) is one of the oldest railroad companies in America. The company offers freight transportation services for a large variety of products. These include fertilizers, grains, coal, ethanol, petroleum, and chemical products. The company was set up as the civil war picked up in U.S. history in 1862, and it is headquartered in Omaha, Nebraska.

Union Pacific Corporation (NYSE:UNP) earned $5.86 billion in revenue and $2.57 in GAAP EPS during its first fiscal quarter, allowing it to beat analyst estimates for both metrics by a hairline. Insider Monkey’s 912 hedge fund survey for this year’s March quarter saw 89 as having invested in the company.

Evercore ISI set a $245 price target for the company in May 2022. It explained that while the sector represents a relatively safe set of stocks for investment, it still is not immune to economic headwinds.

Union Pacific Corporation (NYSE:UNP)’s dividend yield of 2.45% makes it a decent income play amid the current volatile environment. Additionally, the fact that the company is slated to grow free cash flows to $6.9 billion this year makes it an attractive stock. Higher prices, a fuel surcharge and regular buybacks are other attractive points for the company.

Union Pacific Corporation (NYSE:UNP)’s largest investor is Chris Hohn’s TCI Fund Management which owns 5.2 million shares that are worth $1.4 billion.

Disclosure: None. You can also take a look at 10 Best Pharmaceutical Stocks to Buy in 2022 and 10 Best Recession Stocks To Buy.

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