As the U.S. economy shows signs of strengthening, the rail companies should manage to also strengthen. The OECD expects GDP growth to be up 2% in 2013 before rising to 2.8% in 2014. Rail companies are fundamental for moving a variety of products across America on a daily basis. The top rail companies moving products across the U.S. include: Norfolk Southern (NYSE: NSC), Genesse & Wyoming (NYSE: GWR), CSX Corp (NYSE:CSX), Kansas City Southern (NYSE: KSU) and Union Pacific (NYSE: UNP).
These various rail companies are also seeing a boost from rising demand in oil, where the rail companies are becoming a preference to pipelines. As far as the rail companies go, I'm putting my money on CSX (NYSE:CSX). The stock pays investors a 2.7% dividend yield and is arguably the most undervalued company in the industry.