We recently published a list of 10 Best Railroad Stocks To Buy According To Billionaires. In this article, we are going to take a look at where Trinity Industries, Inc. (NYSE:TRN) stands against other best railroad metals stocks to buy according to billionaires.
The trade war initiated by President Trump will force freight railroads to position themselves for the chain reaction. Tariffs on Mexico, Canada, China, and Europe will set in and shake up the trade network. In 2024 alone, American railroads moved $203.1 billion worth of goods across the Canadian and Mexican borders. The rail sector remains a vital economic engine, generating $233.4 billion in output and supporting approximately 750,000 jobs in 2023. At the same time, railroads also demonstrated their commitment to long-term growth by reinvesting $26.8 billion into infrastructure last year.
While much of the attention has been on autos and consumer goods, chemicals are a critical piece of the puzzle. The United States exported over $28 billion in chemicals to Canada last year and imported around $25 billion, making Canada the top supplier of chemical imports. Canada also plays a strategic role in the US critical minerals supply chains, EV battery production, and energy imports, including crude oil, natural gas, and electricity. Industry experts warn that new tariffs could drive up costs across sectors, from chemicals used in drinking water treatment to construction materials like lumber, creating potential inflationary pressure.
Despite the risks, Wall Street remains cautiously optimistic. Analysts believe the supply chain could adapt, especially for goods like lumber that already face steep tariffs. Early signs suggest the administration is moving deliberately, giving companies time to adjust strategies. Railroads and freight remain central players, particularly with Mexico’s auto exports, 70% of which move by rail, and chemicals are heavily reliant on cross-border logistics. Longer term, a trade war could test the strength of USMCA relationships and ripple across North American supply chains, but for now, businesses are preparing while the administration signals a phased approach.
In November 2024, Joe Hinrichs, CEO of a leading US rail company, shared an insight with CNBC’s Jim Cramer that still holds true today:
“From our standpoint, actually, as long as it’s coming to the U.S., we’re going to move it somewhere. If tariffs change the trade portfolio — as long as the economy’s growing, we’ll be a part of it.”
Warren Buffett is a major investor in the railroad industry and has commented that the railroad industry, including BNSF, is a “better business now” than it was in the past. With that outlook in mind, let’s take a look at some of the best railroad stocks that billionaires are piling into.
Is Trinity Industries (TRN) Among The Best Railroad Stocks To Buy According To Billionaires?
A freight train rolling through the countryside carrying a full load of products.
For this article, we focused on making a list of all railroad and railcar stocks publicly listed in the United States. Using Insider Monkey’s Q4 2024 database, we examined billionaire sentiment for each stock and selected the 10 most popular ones. The stocks are ranked in ascending order based on the number of billionaire investors 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).
Number of Billionaire Investors: 8
Stake Value of Billionaire Holdings: $65,860,700
Trinity Industries, Inc. (NYSE:TRN) is a major player in the North American rail industry. The company is involved in leasing, servicing, and manufacturing railcars. Its leasing segment not only rents out freight and tank railcars but also provides maintenance, fleet management, and logistics support. Trinity managed a fleet of around 110,000 railcars serving agriculture, energy, chemicals, and consumer goods sectors. It is one of the best railroad stocks to consider.
On March 31, Trinity Industries, Inc. (NYSE:TRN) announced a quarterly cash dividend of $0.30 per share. The dividend will be paid on April 30, to shareholders on record as of April 15. This is the company’s 244th consecutive dividend payment.
Trinity Industries, Inc. (NYSE:TRN) reported adjusted earnings per share of $1.82 for 2024, a 32% increase from last year. This growth was fueled by higher lease rates, stronger margins, and increased external repair activity. The company’s adjusted return on equity reached 14.6%, right within its target range. Cash flow from operations also saw a big boost, rising 65% to $645 million. TRN’s Railcar Leasing and Services Group posted a 10% revenue increase for the year, successfully repricing over half the fleet at better rates while keeping utilization high. Meanwhile, the Rail Products Group improved profits by 68%, due to smoother operations and labor efficiencies, even though revenue stayed flat.
According to Insider Monkey’s Q4 database, Trinity Industries, Inc. (NYSE:TRN) was part of 8 billionaire portfolios. Billionaire Ken Fisher’s Fisher Asset Management was one of the top shareholders of the company, with 253,871 shares worth $8.91 million.
Overall, TRN ranks 8th among the best railroad stocks to buy according to billionaires. While we acknowledge the potential of TRN as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than TRN but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
