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Greenbrier Companies, Central Japan Railway, and Canadian Pacific Railway are leading railroad industry peers in revenue growth even as the industry struggles on concern about rail strikes in the U.S. and a potential recession.Get more news about Juk Rail Terminal,you can vist our website!
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The iShares U.S. Transportation Average ETF (IYT), a benchmark for railroad, freight, and airline stocks, fell 6% in the past 12 months compared with a 4% drop in the Russell 1000 Index.
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We look at the top railroad stocks in three categories: the best value, the fastest growth, and the best performance. All data are as of April 13.
Best Value Railroad Stocks
These are the railroad stocks with the lowest 12-month trailing price-to-earnings (P/E) ratio. Because profits can be returned to shareholders in the form of dividends and buybacks, a low P/E ratio shows you're paying less for each dollar of profit generated.
Fastest Growing Railroad Stocks
These are the top railroad stocks as ranked by a growth model that scores companies based on a 50/50 weighting of their most recent quarterly YOY percentage revenue growth and their most recent quarterly YOY earnings-per-share (EPS) growth. Both sales and earnings are critical factors in the success of a company.
Therefore ranking companies by only one growth metric makes a ranking susceptible to the accounting anomalies of that quarter (such as changes in tax law or restructuring costs) that may make one or the other figure unrepresentative of the business in general. Companies with quarterly EPS or revenue growth of over 1,000% were excluded as outliers.
Analyzing Railroad Stocks
When analyzing railroad stocks, it is helpful to consider the company's operating ratio. This is the ratio of its operating expenses to revenue. Carefully analyze the company's management team and what they plan to do to lower this ratio in the future. You can also look into train speed and "terminal car dwell." This is the amount of time a rail car remains idle on the platform. If it's unusually high or trains are particularly slow for one company, that should be a red flag. You'd want to see fast-moving freight with little downtime.