We recently released a list According to the billionaire, there are 10 best rail stocks. In this article, we will explore where GATX Corporation (NYSE:GATX) is buying with other best rail metal stocks.
The trade war launched by President Trump will force freight railroads to position themselves as a ripple effect. Tariffs in Mexico, Canada, China and Europe will set and promote trade networks. In 2024 alone, American Railways transported $203.1 billion worth of goods across the Canadian and Mexico border. The railway industry remains an important economic engine, generating $233.4 billion in output in 2023 and supporting approximately 750,000 jobs. Meanwhile, the railway also proved their commitment to reinvestment of $26.8 billion in infrastructure last year.
While most of the focus is on automobiles and consumer goods, chemicals are a key part of the puzzle. Last year, the United States exported more than CAD$28 billion in chemicals to Canada, importing about CAD$25 billion, making Canada the highest supplier of chemical imports. Canada also plays a strategic role in the U.S. key mineral supply chain, electric vehicle battery production and energy imports, including crude oil, natural gas and electricity. Industry experts warn that new tariffs could raise costs across sectors, from chemicals treated with drinking water to building materials such as wood, creating potential inflationary pressures.
Despite the risks, Wall Street is cautiously optimistic. Analysts believe that supply chains can adapt, especially for commodities such as wood that are already facing high tariffs. Early signs indicate that the government is acting intentionally to give companies time to adjust their strategies. Railways and freight continue to be core players, especially Mexico’s automobile exports, where 70% of railways move, chemicals rely heavily on cross-border logistics. In the long run, the trade war could test the strength of USMCA relations and the ripples of supply chains across North America, but for now, businesses are preparing while the government directs a phased approach.
In November 2024, Joe Hinrichs, CEO of the leading U.S. railroads, shared an insight with Jim Cramer of CNBC, which remains true to this day:
“From our perspective, in fact, as long as it comes to the United States, we move it somewhere. If tariffs change the trade portfolio – as long as the economy grows, we will be part of it.”
Warren Buffett is a major investor in the railway industry and commented that the railway industry, including BNSF, is now “a better business now.” With that prospect in mind, let's take a look at some of the best rail stocks that billionaires are piling up.
GATX Corporation (GATX): One of the best rail stocks according to billionaires
An engineer who studies high-tech tanks and vans demonstrates the company's innovation on railroad vehicles.
In this article, we focus on listing all rail and rail stocks that are publicly listed in the United States. Using Insider Monkey's Q4 2024 database, we examined billionaire sentiments for each stock and selected 10 most popular sentiments. As of 4Q42024, these stocks are ranked in ascending order based on the number of billionaire investors.
Why are we interested in stocks that hedge funds to accumulate? The reason is simple: Our research shows that we can beat the market by mimicking the top stocks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small and large stocks quarterly, returning 373.4% since May 2014, up from its benchmark by 218 percentage points (see more details here).
Number of billionaires investors: 6
The value of the stock held by the billionaire: $221,505,093
GATX Corporation (NYSE:GATX) is a leading railway leasing company with a diverse range of railway vehicles, locomotives, aircraft backup engines and tank containers. The company operates in three key areas – North American Rail, Rail International and Engine Leasing. GATX provides rental services for industries such as petroleum, chemicals, food and transportation. It ranks 9th on our list of best rail stocks to buy.
On April 23, the company reported its financial results for the first quarter of 2025. GATX Corporation (NYSE:GATX) reported net income of $78.6 million, up from $74.3 million a year ago. The demand from the fleet remained strong across the board. In North America, railroad vehicle utilization reached an impressive 99.2%, and lease renewals were stable with a success rate of 85.1%. The company also made more than $30 million by selling rail cars in the secondary market. Despite uncertainty in the broader economy, leadership remains optimistic, maintaining full-year expectations of $8.30 to $8.70
GATX Corporation (NYSE:GATX) announced a quarterly dividend of $0.61 per share on April 25. Dividends should be paid to shareholders on June 30, and as of June 13, the company has been paying dividends continuously by shareholders since 1919.
Six billionaires hold stakes in GATX Corporation (NYSE:GATX), according to Insider Monkey’s fourth-quarter 2024 database. The Millennium Manager of billionaire Israeli England is a key position holder of the company, with 37,442 shares worth $5.8 million.
Overall, GATX Ranked 9 According to billionaires, one of the best rail stocks. Although we acknowledge that GATX's potential is an investment, our belief is that AI stocks have greater hope and take place in a shorter time frame. AI stocks have risen since the beginning of 2025, while popular AI stocks have lost about 25%. If you are looking for AI stocks that are more promising than GATX but have less than 5 times its earnings, check out our report The cheapest AI stock.
Read next: According to billionaires, there are 20 best AI stocks available now, and 30 best stocks to buy now.
Disclosure: None. This article was originally published in Internal monkey.
