In tough economic times, there are certain industries which have stayed stable throughout. And what is interesting is that many of these industries which have stayed stable – are the ones which have been around for the longest time.
One of these industries which has withstood the test of time is the railroad industry. And with the Q3 corporate earnings calls winding down, the Railroad stocks are ones that posted some of the most impressive returns in Q3.
Many public companies in the Railroad industry focus on freight rail. A slew of freight rail companies reported solid Q3 earnings, and then Union Pacific added a cherry on top when it reported a record setting 3rd quarter. When freight rail companies perform well – it is generally said to be a good sign for the overall economy, as it means goods are being shipped. And the positive earnings from the Freight companies have helped to bring some investors back into the stock market as a whole.
Another positive sign from the Railroad industry has been the job news which has came out. Many companies in the railroad industry have announced plans to hire and this was welcome news for those working in the industry or those planning to enter the industry. Freight companies are hiring, plus, with President Obama’s plan to build out high speed rail across the US – more railroad jobs are going to be available. The Obama Administration has pledged over $50 billion to build the high-speed rail system in the US. This could be an initiative which defines Obama’s presidency. And if the plan does move forward – not only will it bring more attention to the Railroad industry, but it will of course create jobs.
Industries consistently have ups and down. And in touch economic times, certain industries collapse all together. However, with the passage of time, the railroad sector continues to flourish. If you visit a train station – you will see tons of passengers continuing to utilise trains in their daily lives. And even with all of the great technology that exists, the train is still one of the safest, simplest, cheapest, and most effective way to get from Point A to Point B. And the freight industry also continues to strive as well. After all, Warren Buffet certainly doesn’t think Railroads are a thing of the past, as he owns Burlington Northern Santa Fe.
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