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14 handpicked stocks

Railroad Investment: Beyond the $85 Billion Merger

Union Pacific and Norfolk Southern are seeking to merge, creating America's first transcontinental railroad. This landmark consolidation could drive significant investment into rail infrastructure and technology, creating opportunities for companies that support and equip the freight rail industry.

Author avatar

Han Tan | Market Analyst

Published on December 22

Your Basket's Financial Footprint

This basket's total market capitalisation is 744,363.7660000002, with large-cap constituents anchoring most of the value. That concentration generally gives the basket a broadly stable, lower-risk profile compared with small-cap or high-growth baskets.

Key Takeaways for Investors:
  • Large-cap dominance generally implies lower volatility and closer tracking of broader market movements.
  • Generally suitable as a core holding for diversification, not a speculative high-beta growth position.
  • Likely to deliver steady long-term appreciation rather than rapid short-term gains.
Total Market Cap
  • UNP: $138.94B

  • NSC: $65.39B

  • WAB: $36.95B

  • Other

About This Group of Stocks

1

Our Expert Thinking

This historic $85 billion merger between Union Pacific and Norfolk Southern will create the first coast-to-coast freight railroad in American history. We've identified companies positioned to benefit from the massive infrastructure investments and operational changes this consolidation will bring. The combined entity plans to spend $2.1 billion on system integration alone, creating opportunities across the rail supply chain.

2

What You Need to Know

This is an event-driven investment theme focused on a fundamental shift in North American transportation. The merger is expected to shift nearly two million truck movements to rail annually, creating ripple effects throughout the logistics industry. Companies in this group include the merging parties, their competitors who must respond, and suppliers of everything from locomotives to steel rails.

3

Why These Stocks

Our analysts handpicked these companies based on their direct exposure to the transcontinental railroad opportunity. From the merging railroads themselves to manufacturers of railcars, locomotive suppliers, and intermodal logistics partners, each stock represents a different way to benefit from this landmark consolidation and the infrastructure modernisation it will drive.

Why You'll Want to Watch These Stocks

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Historic Infrastructure Play

This is the first transcontinental railroad merger in American history, creating unprecedented opportunities for companies across the rail supply chain. Major consolidations like this don't happen often.

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Massive Capital Investment

The combined entity plans $2.1 billion in system integration spending alone, with billions more likely for track upgrades, new equipment, and technology modernisation across the network.

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Freight Revolution Underway

Nearly two million truck movements could shift to rail annually, creating a ripple effect of growth opportunities for railcar manufacturers, logistics partners, and infrastructure suppliers.

Get the full story on this Basket. Read our detailed article on its risks and potential.

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