Is The Greenbrier Companies, Inc. (GBX) Among The Best Railroad Stocks To Buy According To Billionaires?
From Yahoo Finance: 2025-04-27 05:50:00
In a recent article, we explored the top railroad stocks favored by billionaires. The Greenbrier Companies, Inc. (NYSE:GBX) is a key player in the railway metals market. The trade war instigated by President Trump is set to impact freight railroads, with tariffs on various countries creating a chain reaction in the trade network. American railroads moved $203.1 billion worth of goods across borders in 2024, highlighting the sector’s economic significance.
Chemicals are a crucial sector affected by the trade war, with the US exporting over $28 billion in chemicals to Canada last year. Canada plays a vital role in US supply chains for critical minerals, EV battery production, and energy imports. Experts warn that new tariffs could hike costs across various sectors, potentially leading to inflationary pressure.
Despite the risks, Wall Street maintains a cautious optimism regarding the trade war’s impact. Analysts believe the supply chain can adapt, particularly for goods like lumber already facing high tariffs. Businesses are preparing for potential changes in trade relationships, with the administration signaling a phased approach to tariffs. The strength of USMCA relationships may be tested in the longer term.
Joe Hinrichs, CEO of a leading US rail company, emphasized the industry’s adaptability in light of changing trade dynamics. Warren Buffett, a major investor in railroads, notes the industry’s improved status, with companies like The Greenbrier Companies, Inc. (NYSE:GBX) attracting investor interest. GBX ranks 7th among the top railroad stocks favored by billionaires, reflecting its potential in the market.
The Greenbrier Companies, Inc. (NYSE:GBX) recently announced a dividend increase and reported strong financial performance for the second quarter of fiscal 2025. With a fleet utilization rate of 98% and a growing backlog of orders, GBX continues to solidify its position in the railcar industry. 11 billionaire investors were bullish on GBX in Q4 2024, indicating confidence in the company’s future prospects.