3 Railroad Stocks With 2024 Gain Potential

3 Railroad Stocks With 2024 Gain Potential

Posted On January 3, 2024 11:33 am

With rising demand for sustainable and cost-effective transportation, a surge in cross-border trades, and numerous technological advancements, the railroad industry is well-poised to experience significant profitability and expansion in the long run.

Hence, investing in fundamentally sound railroad stocks West Japan Railway Company (WJRYY – Get Rating), Westinghouse Air Brake Technologies Corporation (WAB – Get Rating), and L.B. Foster Company (FSTR – Get Rating) could be wise for potential gains this year.

Rail transit is preferred compared to other modes of transportation as it is an ecological and energy-efficient logistics solution. Other factors that play a vital role in the railroad sector’s growth are low transportation cost of freight, rise in cross-border trades, and growing demand for freight rail networks.

The North America rail freight transportation market is expected to grow at a CAGR of 7.5% during the forecast period (2023-2028). The market size is projected to increase by $35.83 billion.

Meanwhile, in 2024, the gross revenue of the global railroad market is anticipated to be valued at $311.63 billion. In addition, the railroad investment might grow at a CAGR of 5% from 2024 to 2034, reaching $507.61 billion by 2034.

Digital technology has further upgraded the railroad sector by making reservation processes easier and enhancing the passenger’ experience. Industry players are increasingly adopting advanced technologies, including Artificial Intelligence (AI), the Internet of Things (IoT), big data, automation, machine learning, and blockchain.

Recent technological advancements include automatic train control systems to reduce technical errors and enhance traffic flows, IoT to enable condition-based monitoring, and AI to improve traffic planning, control, and optimization of railroad operations. In addition, 5G technology will be a crucial catalyst for the industry’s transformation.

The global smart railways market is projected to reach a value of $75.75 billion by 2032, growing at a…

Continue reading at STOCKNEWS.com


About author