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The railroad industry was severely hit amid the COVID-19 pandemic as their operation came to a halt owing to restrictive containment measures. Even though several parts of the world are still witnessing the resurgence of infections, railroad companies are rebounding due to accelerating shipping overland demand and rising freight rates. According to a Technavio report, the railroad market is expected to grow at a CAGR of 10.1% by 2025. Therefore, both CSX and CNI should benefit.
CSX has gained 5.8% over the past three months, while CNI has returned 3.5%. However, CNI’s 18.4% gains over the past year are significantly higher than CSX’s 14% returns. Moreover, CNI is the clear winner with 12.6% gains versus CSX’s 3% returns in terms of the past six months’ performance.
