10 Best TaaS Stocks to Invest in According to Hedge Funds

8) Matson, Inc. (NYSE:MATX)

Number of Hedge Fund Holders: 30

Matson, Inc. (NYSE:MATX) is engaged in the provision of ocean transportation and logistics services. The company employs advanced technology to streamline operations. Therefore, it focuses on emphasizing transportation networks.

Wall Street analysts believe that Matson, Inc. (NYSE:MATX)’s China service will continue to perform well, with elevated freight rates expected moving forward. They remain optimistic about continuing this momentum, leveraging its competitive advantages to drive further revenue growth.

In Q3 2024, within Ocean Transportation, Matson, Inc. (NYSE:MATX)’s China service was the primary driver of the increase in consolidated operating income YoY.  It saw traditional peak season with strong freight demand resulting in significantly higher YoY freight rates for both the CLX and MAX services.

Analysts have noted a recent trend of customers transitioning from air freight to Matson, Inc. (NYSE:MATX)’s expedited ocean services, such as CLX and MAX. These are among the fastest and most reliable in the Transpacific trade. They opine that this shift should offer a better value proposition, contributing to increased volumes and revenue.

Furthermore, Matson, Inc. (NYSE:MATX) announced significant investments in its fleet, including the construction of 3 new Aloha Class vessels. These investments are part of its strategy to enhance shipping capacity and strengthen its position in the competitive container shipping industry. The new Aloha Class vessels should bolster the company’s ability to compete in the high-demand Transpacific and Hawaii shipping markets, resulting in sustainable revenue growth.

The London Company, an investment management company, released its Q2 2024 investor letter. Here is what the fund said:

“Matson, Inc. (NYSE:MATX) – MATX ocean freight services are benefiting from rising shipping rates and improving market conditions. Global ocean freight pricing has been driven up by the ongoing disruption in the Red Sea, coupled with ramping peak season demand and healthier trade volumes. MATX’s success since the onset of the pandemic has led to permanent volume additions in the China trade lane, a transformed balance sheet. and significant share count reduction. MATX remains strategically positioned as a US Jones Act shipping operator and its expedited freight service continues to offer an attractive value proposition for its customers.”