The transports are making new highs, and that is great news for stock market investors. As we have mentioned in the past, the overall stock market typically takes its cue from the transports. As a solid proxy for the economy, when the transports are hot the economy is usually heating up as well. A new research report from Cowen points out that the top railroad stocks’ load factors have been tremendous, diesel fuel prices are high, but stable, and the horrible weather of the first quarter is now a memory. All positive signs that may point to more upside in the second half of 2014 for their top stocks to buy.

Here are the four railroad stocks rated Outperform at Cowen with new higher price targets.

Canadian Pacific Railway Ltd. (NYSE: CP) operates a transcontinental railway in Canada and the United States. The company provides logistics and supply chain expertise services. It transports bulk commodities, including grain, coal, fertilizers and sulfur, as well as intermodal traffic comprising retail goods in overseas containers that can be transported by train, ship and truck, and domestic containers and trailers that can be moved by train and truck. Investors receive a small 0.7% dividend. Cowen raised its price target from $175 to $194. The Thomson/First Call price target for the stock is $182.05. Canadian Pacific closed Thursday at $177.45 a share.

Genesee & Wyoming Inc. (NYSE: GWR) reported April traffic that was up more than 8%, and May is looking like another banner month. G&W owns and operates short line and regional freight railroads in the United States, Australia, Canada, the Netherlands and Belgium. In addition, G&W operates the 1,400-mile Tarcoola to Darwin rail line, which links the Port of Darwin with the Australian interstate rail network in South Australia. Operations currently include 111 railroads organized in 11 regions, with nearly 15,000 miles of owned and leased track, 4,600 employees and more than 2,000 customers. The Cowen price target holds steady on this name at $113. The consensus is at $107.67. G&W closed Thursday at $102.07.

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Norfolk Southern Corp. (NYSE: NSC) shows up as a top transport to buy on many Wall Street lists. The company is expected to be a large beneficiary in the improving U.S. capital expenditures category. The logic here is that improved capex equals more product need and production, which will require transportation. Investors receive a 2.1% dividend. The Cowen price target was raised from $110 to $114. The consensus price objective for this top railroad is $105.10. The stock closed on Thursday at $100.49.

Union Pacific Corp. (NYSE: UNP) is riding the crude oil-by-rail bonanza. If safety can be maintained, all the railroads could be big winners in this emerging arena. The company’s rail service area runs through the mid-continent region, the heart of the energy boom. However, the oil, gas and shale explosion is not limited to moving hydrocarbons from wellhead to market, and further expansion is expected this year and into the future. Investors receive a 1.0% dividend. Cowen raised its price target from $197 to $212. The consensus target is $206.04. Union Pacific closed Thursday at $200.34.

The mere fact that the United States may become a net exporter of energy for the first time in 40 years could be a huge tailwind for these top stocks. They have the ability to get product to almost any destination across the country, and that could prove gigantic if energy is being shipped to all points around the globe from various U.S. ports.

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