10 Best Logistics Stocks to Buy Now

1. Union Pacific Corporation (NYSE:UNP)

Number of Hedge Fund Holders: 87

Value of Hedge Fund Holdings: $4,927,396,000

Union Pacific Corporation (NYSE:UNP) is a railroad holding company established in Utah in 1969. Its headquarters are located in Omaha, Nebraska. The Union Pacific Railroad operates a fleet of 8,300 locomotives across a network spanning 32,200 miles. The company covers routes in 23 US states west of Chicago and New Orleans.

In Q1 2024, Union Pacific Corporation (NYSE:UNP) reported an EPS of $2.6, beating the expectations of $2.5. The company’s operating ratio of 60.7% saw a 140-basis point increase compared to the previous year. There was also a 20-basis point improvement from the fourth quarter.

Overall, the company’s freight revenue increased by 4% year-on-year, while expenses declined by 3% year-on-year. The decline in expenses was driven by lower fuel costs and improved productivity. Analysts have a bullish outlook on Union Pacific Corporation (NYSE:UNP), with an average price target of $265. The average price target reflects an upside potential of over 17%.

Of the 919 hedge funds being tracked by Insider Monkey as of Q1 2024, 87 funds reported owning a stake in Union Pacific Corporation (NYSE:UNP).

While we acknowledge the potential of Union Pacific Corporation (NYSE:UNP) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than AVB but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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