The rail industry is currently going through a period of change and transition. In recent years, railway companies have invested heavily in new technologies and improved infrastructure. This has led to more efficient operations and better safety records. However, these investments have also made the industry more vulnerable to economic downturns. As a result, railway companies are under pressure to cut costs and improve their bottom line.
In response, many railroads implemented layoffs and other cost-cutting measures. This led to increased tension between workers and management, as well as between the various railroad companies. Despite these challenges, the railroad industry remains an important part of the US economy. That being said, railroad stocks have been a popular investment among stock market investors for many years and they offer a number of advantages.
First, railroads tend to be very stable and generate consistent profits. This makes it an ideal investment for investors seeking long-term growth. Additionally, railroad stocks tend to pay high dividends, which can provide investors with a valuable source of income. However, it is important to keep in mind that rail stocks are not without risk. Given all that, here are two top rail stocks to check out on the stock market right now.
Railroad shares to buy [Or Avoid] Currently
1. Union Pacific Corporation (UNP shares)
The first standing Union Pacific Corporation (UNP) is one of the largest railroad operators in the United States. The company’s Union Pacific Railroad subsidiary operates 32,000 miles of track in 23 states, connecting major West Coast and Gulf Coast ports to Eastern Gateways.
UNP Recent Stock Market News
In September, Union Pacific Corporation announced that it would release its third quarter 2022 financial results. In detail, the company said it would release its third quarter 2022 results on Thursday, October 20, 2022, before market open. . In the meantime, let’s take a look at what the UNP did in the second quarter of 2022.
In July, Union Pacific Corporation reported a beating for its second quarter 2022 results. Plunging, the company posted earnings of $2.93 per share in the second quarter of 2022 on revenue of $6.3 billion. dollars. Meanwhile, UNP reported 13.9% revenue growth over the same period in 2021. Additionally, the company reported repurchasing approximately $722 million in share buybacks in the second quarter of 2022.
Further, Lance Fritz, Union Pacific Chairman and CEO of UNP, stated in his letter to shareholders: “We also experienced record fuel prices and an increase in inflation, which increased pressure on our total costs. Cost pressures were offset by higher fuel surcharge revenues, strong base prices, a positive mix and continued train size initiatives. This has resulted in growth in operating revenue and income. Our network fluidity improved during the quarter and we are positioned to increase volumes in the second half of 2022 while continuing to improve our service product.“
UNP Stock Chart
By mid-morning on Tuesday, UNP shares rose 1.35% to $203.00 per share. As Union Pacific prepares to announce third quarter 2022 results, is it time to add UNP stocks to your watchlist?
[Read More] 3 oil stocks to watch this week
2. Trinity Industries Inc. (TRN stock)
Next, Trinity Industries Inc. (TRN) is an American supplier of rail transportation products and services. In short, the company sells and rents railway products and car maintenance services throughout North America. Currently, the company is currently offering its shareholders an annual dividend yield of 3.90%.
TRN Recent Stock Market News
Last month, TRN announced that its board of directors had declared a quarterly dividend of $0.23 per share on common stock. In addition, this dividend payment represents the company’s 234th consecutive dividend payment to its shareholders.
Apart from that, on Monday, the company announced that it has entered into a new long-term railcar supply agreement with GATX Corporation. Diving into the details of the deal, TRN will deliver a mix of 15,000 newly built tank cars and freight cars over a six-year period. Additionally, Trinity will deliver 6,000 tank cars at a rate of 1,200 cars per year from 2024 to 2028. In addition, the remaining 9,000 cars will be ordered at a rate of 1,500 cars per order year from 2023 to 2028. The deal is valued at $1.8 billion for Trinity Industries.
Jean Savage, President and CEO of Trinity, said:This multi-year railcar order with GATX represents the continuation of a strong partnership. We are proud of the relationship we have established with GATX and pleased that they have once again chosen TrinityRail as their premier railcar manufacturer in North America.“
TRN Stock Chart
Following this announcement from the company, shares jumped more than 6% during the trading day on Monday. Meanwhile, in Tuesday’s mid-morning trading session, TRN stock was up another 1.66% on the day to $23.22 per share. Given this announcement, do you think now is the right time to invest in TRN shares?
If you enjoyed this article and want to learn how to trade so that you have the best chance of making a profit consistently, you need to check out this YouTube channel.
CLICK HERE NOW!!