We recently published a list of 10 Best Railroad Stocks To Buy Now. In this article, we are going to take a look at where The Greenbrier Companies, Inc. (NYSE:GBX) stands against other best railroad stocks to buy now.
In February, the Association of American Railroads reported that intermodal volumes remained robust, rising 6.4% year-over-year. Weekly originations hit an all-time high in February, averaging 276,654 units. This growth was fueled by steady consumer spending and some importers ordering extra shipments ahead of possible tariffs. So far in 2025, intermodal volume is up 8.5%, and container volume has jumped 9.5%, setting a new record for this period. Moving forward, intermodal growth will depend on consumer demand, which is closely tied to job market strength and potential trade policy shifts.
However, American railroads experienced a 4.5% drop in carloads, moving 843,618 units in February. In the last five months, January had the first increase in carloads, but harsh winter weather, including flooding in the Northeast and freezing temperatures across most of the country, interrupted operations and obstructed freight handling. Without these weather challenges, rail volumes likely would have been higher. Coal being the largest commodity moved by rail continued its downward trend, with carloads dropping 8.2% in February and marking the 14th consecutive month of declines.
As the US ramps up its trade war under President Trump, freight railroads are preparing for the fallout. New tariffs on Mexico, Canada, China, and the EU are set to take effect soon, potentially disrupting a massive trade network. In 2024, American railroads handled $203.1 billion in cross-border trade with Canada and Mexico, being almost evenly split between the two, as reported by CNBC. The rail industry is a huge economic driver, generating $233.4 billion in output and supporting around 750,000 jobs in 2023. Texas is a major hub for freight rail employment since it handles most of the US to Mexico rail traffic. Railroads also reinvested $26.8 billion in infrastructure last year, mostly through private funding. As trade tensions rise, the industry remains focused on keeping goods moving and ensuring rail infrastructure stays strong.
Our Methodology
For this article, we focused on making a list of all railroad and railcar stocks that are publicly listed in the United States. Using Insider Monkey’s Q4 2024 hedge fund database, we examined the hedge fund sentiment for each stock and selected 10 most popular ones. The stocks are ranked in ascending order based on the number of hedge fund holders as of Q4 2024.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
A freight train carrying railcar equipment in the foreground with a commercial area in the background.
The Greenbrier Companies, Inc. (NYSE:GBX)
Number of Hedge Fund Holders: 27
The Greenbrier Companies, Inc. (NYSE:GBX) specializes in designing, manufacturing, and marketing railroad freight car equipment across North America, Europe, and South America. The company manufactures a variety of railcars, including covered hoppers, gondolas, boxcars, tank cars, and intermodal railcars. Additionally, it provides wheel and axle reconditioning, railcar repairs, and parts manufacturing, as well as leasing solutions and fleet management for railroads, shippers, and transportation companies. GBX is one of the best railroad stocks to buy.
The Greenbrier Companies, Inc. (NYSE:GBX) had a solid first fiscal quarter of 2025, ending November 30, 2024, with $55 million in net earnings on $876 million in revenue. The company maintained its lease fleet utilization near 99% while adding 1,200 units, bringing the total to 16,700. It secured new orders for 3,800 railcars worth $520 million and delivered 6,000 units, growing its backlog to 23,400 railcars valued at $3 billion. The board also paid its 43rd consecutive quarterly dividend of $0.30 per share on February 19, and extended its $100 million share repurchase program through January 2027.
Among the hedge funds tracked by Insider Monkey, The Greenbrier Companies, Inc. (NYSE:GBX) was owned by 27 funds at the end of Q4 2024, up from 23 in the prior quarter. Ken Fisher’s Fisher Asset Management was a prominent stakeholder of the company, with 466,053 shares worth $28.4 million.
Overall, GBX ranks 7th on our list of best railroad stocks to buy now. While we acknowledge the potential of GBX to grow, our conviction lies in the belief that certain AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than GBX but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
