With Oil rising to all time highs, more people are carpooling, vanpooling, taking the Subway or riding their bike to work. Also, the way we transport commodities is changing as well. Railroads are much more energy-efficient than their competition. Locomotives today get 80% more mileage from a gallon of diesel than they did in 1980. As a result, trains consume far less fuel than trucks do to move the same amount of freight.

That not only saves on costs, it reduces emissions of greenhouse gases. The Environmental Protection Agency calculates that for distances of more than 1,000 miles, using trains rather than trucks alone reduces fuel consumption and greenhouse gas emissions by 65%.

Yes, I envision a future where you no longer have to battle the interstate with Freight trucks! That alone should make you want to support your local railroad.

Here are 7 Railroad companies worth looking at right now:

Railroad Stocks
Burlington Northern Santa Fe Corporation (NYSE: BNI)
Norfolk Southern Corp. (NYSE: NSC)
CSX Corporation (NYSE: CSX)
Genesee & Wyoming Inc. (NYSE: GWR)
Providence & Worcester Railroad Company (AMEX: PWX)
Kansas City Southern (NYSE: KSU)
Union Pacific Corporation (NYSE: UNP)

We normally don’t mention too many OTC stocks here at the Stockmasters, but this little OTC caught my eye as well: Pioneer Railcorp (OTC: PRRR)

Pioneer Railcorp holding company that operates in two business segments: railroad operations and railroad equipment leasing. Railroad operations are provided by the Company’s wholly owned short line railroad subsidiaries whose rail system provides shipping links for customers along its routes and interchanges with five major railroads, Burlington Northern Santa Fe Railroad (BNSF), CSX Transportation (CSX), Canadian National Railway Company (CN), Norfolk Southern Railway (NS) and Union Pacific Railroad (UP). In addition, the Company’s railroad subsidiaries have interchanges with two smaller railroads, the Kansas City Southern Railway (KCS) and the Arkansas & Missouri Railroad (AM). PRC’s rail system is primarily engaged in carrying freight. The Company’s railroad equipment leasing operation provides locomotives, railcars and other railroad-related vehicles and equipment to its operating railroad subsidiaries.

Pioneer could very well be the diamond in the rough of all of these stocks, especially if the railroad industry continues to grow as we expect it to.

Good luck, and happy railroad investing.

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