Five Railroad Stocks to Buy Now

2015 was one of the worst periods for railroad stocks in many years. The heavy declines in the price of crude oil and coal, which are the largest cargo loads for the industry, took a heavy toll on the sector last year, causing many rail companies to post dismal financial numbers. This poor performance was reflected by their stock prices, which were on a consistent decline throughout the year. The underperformance of the sector can be gauged from the returns of the Dow Jones U.S. Railroads Index, which ended 2015 down by over 30%. In comparison, the broader market suffered only a marginal decline during that time. Though the sector began 2016 with declines too, it suddenly changed its trajectory a few weeks ago and has been rallying since then. The Dow Jones U.S. Railroads Index is currently trading up by over 25% from its 52-week low of $879.01, which it hit on January 25, and now boasts year-to-date gains of over 6%. Taking into account that the sector is showing signs of positive momentum, we at Insider Monkey though it might be the right time to come up with a list of railroad stocks based on their popularity among the hedge funds that we track heading into this year. In this article we’ll disclose and analyze the five stocks that made it to the top of our list.

Let's look closer those railroad stocks: CP, NSC, KSU, CSX, UNP

Source: Insider Monkey