Demand for freight and rail services continues to rise as the economy recovers and there are still supply chain disruptions. We believe it would be a smart move to buy shares in fundamentally sound railroad stocks CSX(CSX). Norfolk Southern (NSC), Westinghouse Air Brake Let’s discuss.The railroad industry suffered a significant setback amid the COVID-19 pandemic as travel restrictions were imposed. However, with a robust vaccination program and the economy’s gradual recovery, the industry is regaining some momentum. The continued supply disruptions that continue are driving the demand for freight services and rail is also driving up demand. Trains.com reports that new revenues for the railroad industry could reach $61 million by 2030, according to their report.

The recently passed bi-partisan $1.2 trillion infrastructure bill includes $66 billion in freight and passenger rail investment, which should significantly boost the industry’s prospects. The Federal Railroad Administration estimates that 28% of U.S. freight moves by rail. This figure is expected to rise significantly over the coming decades. A growing number of battery-electric trains are also in demand due to environmental issues and cost savings.

So, we think it could be wise to add quality railroad stocks CSX Corporation (NASDAQ:), Norfolk Southern Corporation (NYSE:), and Westinghouse Air Brake Technologies Corporation (NYSE:) to one’s portfolio now. They should see a rise in this month and the next.

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