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Rebuilding The Rails

After decades of neglect, American railroads are spending billions to expand and upgrade their networks.

Should you hop on board?

If you think it’s too late to get on-board with railroad plays, you’re wrong says Guy Adami on CNBC’s Closing Bell. You have not missed this train!

Why?

It’s the agriculture story. As our nation produces more crops, especially corn for ethanol, it's the railroads that stand to benefit. In fact Burlington Northern said they expect to see record volumes in agriculture and coal. And Bear Stearns recently increased their price targets on the sector.

Of course, never get on a train without looking, says Adami. In the short term, these stocks are probably due for a pullback. But longer term I think they’re a value considering what their growth will likely be.

I most like Burlington Northern (BNI) and CSX Corp. (CSX), he reveals. And also watch Trinity Industries (TRN), Wabtec (WAB), and Greenbrier (GBX) which should benefit as the railroads begin to put money back into their own equipment.

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