American railroad stocks like Norfolk Southern (NYSE:NSC) have been beating the S&P averages over the last year, as inflation has risen and the efficiency of railroads for moving freight has looked more attractive. Source: Shutterstock Canadian Pacific investors have been hoping for gains ever since the company announced its deal to buy the Kansas City Southern line last September. That deal ended a six-month pursuit, which also included the rival Canadian National Railway (NYSE:CNI), whose effort to top CP’s bid was denied by a court.