10 Best Transportation Stocks to Buy According to Hedge Funds

7. FedEx Corporation (NYSE:FDX)

Number of Hedge Fund Investors: 65

FedEx Corporation (NYSE:FDX) is among the Best Transportation Stocks. It is a global transport and logistics company that offers rapid shipping, ground delivery, freight transportation, and business services. Despite near-term volume pressure from limited store restocking and lackluster industrial end markets, its US ground and foreign express delivery operations could benefit from longer-term e-commerce development. FedEx CEO Raj Subramaniam expressed confidence that the company’s massive worldwide network will help it handle supply chain disruptions. He highlighted potential trade concerns, such as tariff increases, but underlined that the firm handles 99% of global business and can adjust capacity as needed.

FedEx Corporation (NYSE:FDX) spent $820 million on capital expenditures in the second quarter of fiscal year 2025, putting its total capital expenditure for the year at $5.2 billion. The company also continues to generate strong free cash flow and repurchased $1 billion in shares, bringing the total repurchases for the year to $2 billion, with another $500 million anticipated for the second half.

On February 6, 2025, FedEx Corporation (NYSE:FDX) purchased RouteSmart Technologies, a global pioneer in route optimization, to improve operational efficiency. The two long-term collaborators anticipate a seamless combination, with RouteSmart continuing to service a variety of industries. RouteSmart will operate independently under FedEx Dataworks, enhancing FedEx’s logistics technology capabilities.