Railroad stocks have long been popular among stock market investors. This is because they provide investors with a reliable source of income and the potential for capital appreciation. For starters, railroad companies own and operate the tracks and infrastructure used by freight trains, and they generate revenue from the transportation of goods. As a result, railroad stocks tend to be less volatile than other types of stocks, making them an attractive option for conservative investors.
Just this week, railroad stocks have been in the stock market news headlines. In detail, a number of large railroad operators have sent a warning about the possibility of a nationwide railroad strike. If in fact, this does happen, it could continue to constrain the U.S. supply chain issues that have been ongoing since the COVID-19 lockdowns. Knowing this could present a possible buy-the-dip type opportunity for investors. Here are two railroad stocks to check out in the stock market this week.
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