Stock for Union Pacific Corp. (ticker: UNP) dropped 34 percent in the past year, while Canadian Pacific Railway Limited (CP) shares declined 37 percent and CSX Corp. (CSX) fell 31 percent.
Coal output in the U.S. fell 10 percent in 2015 to about 900 million short tons, the lowest level since 1986, according to the Energy Information Administration. Consumption also declined 10 percent as warm weather reduced the amount of coal used for heating.
Rail cargo volumes, however, are forecast to stabilize in 2016 on increased coal consumption as winter weather takes hold in much of the nation and natural gas prices increase, the EIA says in a recent report. While it won't be a blockbuster year for the industry, improved coal consumption may be enough to get the railroads back on track.