UBS has issued a stark warning to investors, slashing earnings forecasts for major U.S. rail stocks including Union Pacific, CSX, and Norfolk Southern. The revised projections signal a looming economic storm that could wreak havoc on the rail sector, with 2025 EPS expectations dropping significantly. The downgrade is fueled by growing concerns over the weakening industrial markets and rising inflation, which is expected to outpace revenue growth from pricing strategies. This turbulent outlook could have far-reaching consequences for major players in the rail industry, threatening long-term profitability and casting a shadow of uncertainty over the sector’s future. Despite anticipated productivity gains, UBS highlights that cost efficiencies alone won’t be enough to counter the economic pressures, leaving rail operators in a precarious position. Investors who have relied on the cyclical nature of the rail sector now face tough decisions as the industry grapples with declining coal revenues and stagnant merchandise volumes.
https://100billionclub.blogspot.com/2025/04/us-rail-stocks-face-grim-future-as-ubs.html