Rail Recession In Volume Only

FreightWaves contributor Jim Blaze has already declared that we are in a recession for U.S. rail freight. Shareholders are still happy, with Union Pacific (NYSE: UNP) and Kansas City Southern (NYSE: KSU) beating the S&P Index over the past 12 months (see graph below), and beating it handily in the case of Kansas City Southern. As a result of the strong results, railroad shares are back to trading near all-time highs both in absolute terms and on forward price-earnings multiples.