Here's Why Rail Road Stocks, Including Genesee & Wyoming, Rallied in November
Shares of Genesee & Wyoming (NYSE: GWR) rose 8.9% last month, which was quite a jump considering that the stock had been relatively flat this year. While the company unveiled a bullish long-term outlook at its investor day, the primary fuel of last month's big move was optimism that Congress would pass a massive tax overhaul, which would reduce rates for corporations like railroads.
Genesee & Wyoming joined fellow railroad stocks Kansas City Southern (NYSE: KSU), Norfolk Southern (NYSE: NSC), and Union Pacific (NYSE: UNP) in rallying last month on the hope that Congress would pass President Trump's tax cut plan. Genesee & Wyoming led that group by jumping 8.8% in the just last three days of the month followed by an 8% jump from Union Pacific and 6% gains from Kansas City Southern and Norfolk Southern. Fueling that late surge was the market's view that it was increasingly likely that the Senate would have the votes needed to pass the sweeping tax reform package.
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Source: Fool.com