11 Best Freight Stocks To Buy Now

1. Union Pacific Corporation (NYSE:UNP)

Number of Hedge Fund Holders: 87 

Union Pacific Corporation (NYSE:UNP) ranks first on our list of the best freight stocks to buy now. The railroad company has operations across 23 states in the United States and ships several commodities including food, forest products, automobiles, agricultural products, coal, and chemicals.

Analysts are bullish on Union Pacific Corporation (NYSE:UNP) and hold a consensus buy opinion. Based on price targets of 30 analysts, the stock’s median forecast of $270 represents an upside of over 18% from current levels, as of May 31. The stock is also popular among investors, as 87 hedge funds disclosed having stakes in the company worth $4.93 billion at the close of the first quarter. Ken Fisher’s Fisher Asset Management was among the top shareholders in the company and disclosed a position worth $1.47 billion.

Union Pacific Corporation’s (NYSE:UNP) generated revenue of $6.03 billion in Q1 2024 and beat revenue estimates by $59.45 million. The company logged an EPS of $2.69 and beat estimates by $0.17. Union Pacific Corporation (NYSE:UNP) has grown its earnings by 5.74% over the past 5 years and is expected to grow them by 14.5% over the next 5 years. The company intends to improve its profitability in 2024 and enhance efficiency.

Union Pacific Corporation’s (NYSE:UNP) diversified business model sets it apart. In the first quarter of 2024, the company saw a 14-17 point year-over-year improvement in intermodal, manifest, and auto SPI. Union Pacific Corporation’s (NYSE:UNP) freight revenue increased by 4% relative to last year, and expenses went down by 3% year-over-year.

While we acknowledge the potential of 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 as promising as UNP but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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