10 Best Transportation Stocks to Buy According to Hedge Funds

6. Canadian Pacific Kansas City Limited (NYSE:CP)

Number of Hedge Fund Investors: 74

Canadian Pacific Kansas City Limited (NYSE:CP) owns and manages a transcontinental freight rail network in Canada, the United States, and Mexico. Following the appointment of railroading icon Hunter Harrison as CEO in 2012, the company experienced a remarkable profitability recovery. After taking over, Harrison closed multiple intermodal terminals and hump yards to rightsize the network.

Revenues climbed by 3% to $3.9 billion in the fourth quarter of 2024, up from $3.8 billion the previous year, because of volume growth, improved safety performance, and strong operational execution. It enabled Canadian Pacific Kansas City Limited (NYSE:CP) to achieve industry-leading earnings growth in 2024, making it among the Best Transportation Stocks.

In February, Canadian Pacific Kansas City Limited (NYSE:CP) stated that it had negotiated a tentative four-year agreement with the United Steelworkers for clerical and intermodal workers in Canada. In the same month, the Patrick J. Ottensmeyer International Railway Bridge was officially opened with a ceremonial ribbon cutting over the Rio Grande. The $100 million bridge, named after the final KCS president and CEO who died in July 2024, is the only train bridge that connects Laredo, Texas, to Nuevo Laredo, Tamaulipas.

Chris Hohn’s TCI Fund Management was the largest stakeholder in the company among the funds in Insider Monkey’s database at the end of Q4 2024. It owns 54.91 million shares worth $3.97 billion as of Q4.