Freight railroad is vital for domestic freight as it accounts for around 40% of the U.S. transport sector. A strong U.S. economy supports the bullishness of freight railroad operators, as it implies that more goods are being transported across the country.
The robust financial health of railroads bears testimony to the fact that the scenario has improved considerably for players in this industry, after having been battered by coal-related headwinds over the last few years. This indicates that freight railroad stocks will provide good return in the long-term.
Article by Nalak Das. Go to zacks.com for full article