In this article, we will take a look at the 11 best freight stocks to buy now. We also study the overall outlook of the freight industry and discuss the major players.
The Red Sea Crisis & Shipping Challenges
The Red Sea accounts for 30% of global container trade via the Suez Canal. According to a report by JP Morgan, the Houthi attacks have disrupted the entire supply chain, forcing companies to reroute around Southern Africa, adding 4,000 miles to every journey. Rerouting will increase transit times by almost 30% and global container shipping capacity will decline by almost 9%. The report suggests that spot rates have soared amid the crisis. Spot rates in January 2024 from China to the US West and East Coast rose by 140% to 120% compared to November 2023. Jamie Dimon’s investment bank expects trade disruptions to add 0.7 percentage points to global core goods inflation, and 0.3 percentage points to overall core inflation.
On May 6, Reuters reported that Maersk, the shipping giant, predicted that the crisis would cut the industry’s capacity by almost 20% between Asia and Europe in the second quarter of 2024. Large shipping companies have diverted routes around Africa, leading to a rise in freight costs and shipping time. According to the Danish shipping group, shipping costs between Asia and Europe are now 40% higher for every journey. While experts expect the crisis to slow down before the end of 2024, the uncertainty and risk attached to the future of shipping are costing major shipping companies. To counter bottleneck situations and fuel faster sailing, companies are increasing their shipping capacity. The company has so far released over 125,000 additional containers. You can also read our piece on the most advanced countries in logistics.
Technology Disrupting the Freight Industry
While the Red Sea crisis is a major headwind for the freight industry, technological advancements will be monumental for the sector’s growth. Companies like GXO are using technology to disrupt the industry. You can also take a look at the richest billionaires in the logistics industry.
On May 14, the company deployed robots for a global sporting goods retailer in France. The robotics solution was designed to reduce the order processing time and improve response time to seasonal volume changes. The solution is deployed across 12,000 square meters at the site. The solution includes 500 autonomous mobile robots that manage 70,000 bins on 5.5-meter tall storage racks. In 2023, the company increased its automated and tech systems by 50% and is actively working to integrate machine learning and artificial intelligence. Here are some comments from the company’s Q1 2024 earnings call:
“Automation is a key tenant of our value proposition. And we’re the first mover in trialing the integration of cutting-edge automation like humanoid and AI inside the four walls of the warehouse. We’ve recently introduced some exciting innovations in AI. First, the warehouse optimization pilot we mentioned last quarter was a success driving a productivity increase of approximately 15%, and we’re rolling out the app across our sites as we speak. Second, we’ve recently piloted a proprietary workforce management tool, which we developed in-house. Our tool makes more than 15 million decisions per minute to streamline inventory replenishment and adding about 7% of capacity at no additional cost. We will be deploying this solution broadly across our operations starting this year.”
Now that we have studied the freight industry, let’s discuss some of the best freight stocks to buy now. You can also read our piece on the best transportation stocks to buy.
An aerial view of an expansive shipping dock, its bustle of activity serving as a visual representation of the company’s business.
Our Methodology
To come up with the 11 best freight stocks to buy now, we went over our own rankings, similar rankings on the internet, and three transportation ETFs. We created an initial pool of 30 freight stocks and selected the top 11 with the largest number of hedge fund holders as of Q1 2024. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points. (see more details here).
11 Best Freight Stocks To Buy Now
11. Old Dominion Freight Line (NASDAQ:ODFL)
Number of Hedge Fund Holders: 38
Old Dominion Freight Line (NASDAQ:ODFL) ranks 11th on our list of the best freight stocks to buy now. The transport company offers freight shipping nationwide and has freight brokers placed across the globe. Old Dominion Freight Line (NASDAQ:ODFL) is one of the largest operators of less-than-truckload fleets in the US and
Old Dominion Freight Line (NASDAQ:ODFL) is popular among investors. At the end of the first quarter of 2024, 38 hedge funds were bullish on Old Dominion Freight Line (NASDAQ:ODFL) and disclosed positions worth $448.28 million. Of those, Cliff Asness’s AQR Capital Management was the top investor in the company and disclosed a stake worth $82.04 million. Wall Street holds a consensus buy opinion on Old Dominion Freight Line (NASDAQ:ODFL). Based on price targets from 24 analysts, the stock has a median price target of $205.5, representing an upside of 18.42% from its current price of $173.54, as of June 18.
Old Dominion Freight Line (NASDAQ:ODFL) has a fleet of 11,000 trucks and 46,000 trailers. On April 24, Old Dominion Freight Line (NASDAQ:ODFL) posted strong earnings for the fiscal first quarter of 2024. The company reported earnings per share of $1.34 and revenue worth $1.46 billion, up by 1.24%, year-over-year. For the full year, analysts anticipate the company to grow its earnings by 6.5% in 2024, and 18% in 2025.
Here are some comments from The London Company’s Q4 2023 investor letter:
“Old Dominion Freight Line, Inc. (NASDAQ:ODFL) – Shares of ODFL underperformed in the quarter reflecting a weak freight market. The company’s earnings report was positive, though, as declining volumes were somewhat offset by higher yields. The company did not chase share gains following the recent bankruptcy of Yellow Corp. This should be seen as a positive, though as ODFL has always chosen to focus on freight and revenue quality. We view ODFL as the best operator in the LTL freight industry.”
But why should you consider ODFL? The stock is currently trading at 29 times its forward earnings, close to its 5-year average P/E multiple of 30x. Analysts expect the group to report an EPS of $7.09 in 2025 and ODFL’s share price could reach $213 (+23% from current levels) if it outperforms analysts’ estimates in 2025, as it has over the past 4 years. The competition in the LTL market is fierce and we think ODFL’s strong brand image in the US, its network of over 250 services centers, and 90-year legacy of successful operations make it a freight stock worth considering at current levels.
10. GXO Logistics, Inc. (NYSE:GXO)
Number of Hedge Fund Holders: 39
GXO Logistics, Inc. (NYSE:GXO) is one of the best freight stocks to buy now. The company is a global contracts logistics company responsible for managing outsourced supply chains, warehousing, and reverse logistics.
39 hedge funds disclosed having stakes in GXO Logistics, Inc. (NYSE:GXO) at the end of Q1 2024. The total value of these stakes amounted to $1.03 billion. As of March 31, William B. Gray’s Orbis Investment Management is the largest stockholder in the company and has a stake worth $769.63 million.
On May 7, GXO Logistics, Inc. (NYSE:GXO) reported market-beating earnings for the fiscal first quarter of 2024. The company generated a revenue of $2.46 billion, up 5.73% year-over-year and ahead of Wall Street estimates by $41.3 million. The company reported earnings per share of $0.45, ahead of market consensus by $0.2. Wall Street is Bullish on GXO Logistics, Inc. (NYSE:GXO). Based on price targets from 14 analysts, the company has a median price target of $72.5, representing an upside of 52.25% from its current price of $47.62.
To push its favorable stance on AI and automation, in the first quarter of 2024, the company closed its Wincanton deal, bringing $1.8 billion in revenue and 20,000 employees to GXO. Earlier this year, the company made some moves in artificial intelligence, by partnering with Dexterity, an AI-backed robotics firm to make operations for a beauty brand more efficient and safe. These AI robots can label packages and manage inbound and outbound warehouse processes.
By 2027, the company expects revenues to range between $15.5 and $16 billion and adjusted EBITDA to range between $1.25 billion to $1.3 billion. Analysts polled by Yahoo Finance expect the company to grow its earnings by 8.11% in 2024 and 27.03% by 2025. Here are some comments from Aristotle Capital Boston’s Q2 2023 investor letter:
“GXO Logistics, Inc. (NYSE:GXO), a pure-play contract logistics company that offers warehousing, distribution, fulfillment, e-commerce, reverse logistics, and other custom solutions, was added to the portfolio. As one of the largest warehouse logistics providers in the world, we believe the company remains well positioned to benefit from a variety of secular tailwinds including: increases in outsourcing of fulfillment capabilities, automation of warehouse operations, global ecommerce growth and adoption, and nearshoring of warehouse and distribution networks.”
9. Knight-Swift Transportation Holdings Inc. (NYSE:KNX)
Number of Hedge Fund Holders: 39
Knight-Swift Transportation Holdings Inc. (NYSE:KNX) ranks ninth on our list of the best freight stocks to buy now. The transport company provides full truckload carrier services with an extensive fleet of 19,00 tractors, 58,000 trailers, and a 24,000-person workforce.
Knight-Swift Transportation Holdings Inc. (NYSE:KNX) is popular among investors. At the close of Q1 2024, 39 investors were bullish on the stock and held positions worth $729.45 million. Of those, Brandon Haley’s Holocene Advisors held the largest stake with a position worth $145.06 million. The stock is also on analysts’ radars. Based on 19 analyst ratings, Knight-Swift Transportation Holdings Inc. (NYSE:KNX) has a median price target of $55, which implies an upside of 16.43% from its current price of $47.24. The stock sports a consensus buy rating.
In June 2023 Knight-Swift Transportation Holdings Inc. (NYSE:KNX) acquired logistics company U.S. Express and has worked on optimizing it since then. The group believes the newly added business will outperform the legacy U.S. Express and bridge the margin gap between its legacy Knight and Swift fleets as the transportation and freight market recovers. Management is focused on improving margins and generating free cash flow to pursue more acquisitions in the less-than-truckload LTL market, and the mid-term goal for them is to set up a national network with an annual revenue of $2 billion.
While the industry is experiencing major headwinds, analysts expect the company to push through and grow its earnings by 121.05% over the next 12 months and 42.2% over the next five years. On May 15, Raymond James reiterated a strong buy rating on Knight-Swift Transportation Holdings Inc. (NYSE:KNX) and maintained a price target of $58.
8. Canadian National Railway Company (NYSE:CNI)
Number of Hedge Fund Holders: 40
Canadian National Railway Company (NYSE:CNI) is one of the best freight stocks to buy now. The company has a 20,000-mile network across Canada and the United States covering the Atlantic, Pacific, and the Gulf of Mexico.
Canadian National Railway Company (NYSE:CNI) is also popular among investors. At the close of the first quarter of 2024, 40 investors were bullish on the company and held consolidated stakes worth $13.53 billion. Of those, Michael Larson’s Bill & Melinda Gates Foundation Trust was the largest stakeholder, with a position worth $7.22 billion.
The company’s earnings grew by 11.28% over the past 12 months and 6.82% over the past five years. Analysts polled by Yahoo Finance expect the company’s earnings to grow by 11.17% in 2024 and by 25.19% in 2025.
While the freight industry remains volatile due to geopolitical risks, the company’s intermodal international and forest products segment continues to improve. With growth expectations in mind, the company expects to deliver 10% EPS growth in 2024. Canadian National Railway Company (NYSE:CNI) has a dividend yield of 1.9% as at the time of writing. The company has a 5-year dividend growth rate of 10.58% and a payout ratio of 44.57%. CNI is also on analysts’ radars. Based on price targets from 31 analysts, the stock has a median price forecast of $134.31, representing an upside of 12.56% from its current price of 119.32.
7. United Parcel Service, Inc. (NYSE:UPS)
Number of Hedge Fund Holders: 43
United Parcel Service, Inc. (NYSE:UPS) ranks seventh on our list of the best freight stocks to buy now. United Parcel Service, Inc. (NYSE:UPS) is a global shipping and logistics company based in the United States. The company offers freight forwarding services as part of its supply chain solutions. The company offers air freight services to over 220 countries, moves ocean freight across 2,300 lanes, and offers ground-less-than-truckload freight.
43 hedge funds disclosed having stakes in United Parcel Service, Inc. (NYSE:UPS) at the end of Q1 2024. The total value of these stakes amounted to $969.77 million. As of March 31, Ken Griffin’s Citadel Investment Group is the largest stockholder in the company and has a stake worth $433.48 million. As of March 31, United Parcel Service, Inc. (NYSE:UPS) has a cash flow from operating activities of $3.3 billion, with a free cash flow of $2.3 billion, and a strong financial profile that can pay high dividends yielding 4.71%. In the first quarter of 2024, XPO, Inc. (NYSE:XPO) returned $1.3 billion in dividends. Here are some comments from Artisan Partners Q1 2024 investor letter:
“Despite the long-term growth tailwinds from the secular shift toward e-commerce, the shipping business is still cyclical, so disappointments will happen. However, we welcomed the market’s short-term focus as it provided us an opportunity to purchase UPS at an undemanding valuation of less than 11X our view of normalized earnings. UPS is a good transport operation that easily earns its cost of capital, generates significant free cash, has a wide economic moat, has a strong financial profile and pays an attractive dividend yielding 4%. With the new 5-year labor agreement completed, we believe UPS can focus on regaining lost volume and improving its cost structure.”
On April 23, United Parcel Service, Inc. (NYSE:UPS) reported market-beating earnings for the fiscal first quarter of 2024. The company reported revenue worth $21.7 billion and logged earnings per share of $1.43, beating estimates by $0.09. Analysts expect the company to grow its earnings by 18.68% in the next 12 months and by 6.8% over the next five years. In 2024, the company expects to generate almost $3 billion in global DAP revenue. The company’s tech prowess sets it apart from its competitors. The company has achieved a 74% reduction in pickup concerns and a Net Promoter Score of 48 using its new driver dispatch technology. Since April 2023, international customers using its next-gen brokerage solution have reported 40% fewer customer brokerage holds. In 2024, XPO, Inc. (NYSE:XPO) expects to generate a consolidated revenue between $92 to $94.5 billion and a consolidated operating margin ranging between 10% to 10.6%.
6. XPO, Inc. (NYSE:XPO)
Number of Hedge Fund Holders: 47
XPO, Inc. (NYSE:XPO) is one of the best freight stocks to buy now. The company is a leading asset-based less-than-truckload freight transportation company based in North America. The company has more than 13,000 drivers and over 43,000 tractors and trailers to meet the shipping needs of 99% of US ZIP codes. In 2023, the company added more than more than 1,400 tractors and produced over 6,400 trailers.
At the close of the first quarter of 2024, 47 investors held stakes in XPO, Inc. (NYSE:XPO), with consolidated positions worth $3.33 billion. Of those, Farhad Nanji and Micheal Demichele’s MFN Partners was the largest investor, with a position worth $1.55 billion.
To improve safety, the company plans to include a freight airbag system expected to be completed by mid-2024. Sites with airbags have witnessed a decline in damage frequency by 20%. The company also rolled out new tractors and trailers capable of improving the company’s fleet maintenance. XPO, Inc. (NYSE:XPO) also delivered a growth in yield, excluding fuel, by almost 10% year-over-year, helping the company improve its adjusted operating ratio by 400 basis points. In 2024, the company expects to increase the number of miles brought in-house, to improve efficiency, flexibility, and quality control.
By the end of 2024, XPO, Inc. (NYSE:XPO) will have a few hundred 100 sleeper trucks fully functional for use. Its volume growth is expected to surpass the company’s headspace count providing a large margin opportunity. On May 3, the company reported market-beating earnings for the fiscal first quarter of 2024. The company logged revenue worth $2.02 billion, up by almost 6% year-over-year, ahead of market consensus by $13.52 million. The company also reported earnings per share of $0.81, beating estimates by $0.13. The company grew its earnings by over 25% over the past 12 months and analysts project earnings to expand by almost 30% over the next five years.
Here are some comments from ClearBridge Investments in its Q3 2023 Investor Letter:
“Our holdings in the industrials sector also contributed during the quarter. XPO, Inc. (NYSE:XPO), which provides freight transportation services internationally, rallied on the news that industry competitor Yellow had filed for bankruptcy, resulting in market share gains for XPO.”
5. Delta Air Lines, Inc. (NYSE:DAL)
Number of Hedge Fund Holders: 51
Delta Air Lines, Inc. (NYSE:DAL) ranks fifth on our list of the best freight stocks to buy now. Delta Cargo is responsible for worldwide shipping. Its freight service allows individuals to ship commodities domestically and across borders.
Delta Air Lines, Inc. (NYSE:DAL) is a popular stock among investors. At the end of the first quarter of 2024, Delta Air Lines, Inc. (NYSE:DAL) was spotted on 51 investors’s portfolios. These funds held collective positions worth $1.81 billion. Of those, GMT Capital held a stake worth $323.51 million. Investors believe that the company’s operational performance and stellar customer experience set it apart from its competitors.
Delta Air Lines, Inc. (NYSE:DAL) recently announced strong earnings for the fiscal first quarter. The company generated a revenue of $13.75 billion, up by 7.75% year-over-year, and beat revenue estimates by $953.36 million. The company logged an EPS of $0.45 and beat EPS estimates by $0.09. Delta Air Lines, Inc. (NYSE:DAL) is expected to grow its earnings by 6.5% and revenue by 6.2% in 2024.
In 2023, the company significantly improved its financial position and maintained strong profitability, ending the year with $2 billion in free cash flow. The company also paid off almost $4.1 billion in debt and finance lease obligations. In 2023, the company’s cargo segment, responsible for airline freight gateways, reported revenue worth $723 million.
Here are some comments from Oakmark Funds Q1 2024 investor letter:
“Delta Air Lines, Inc. (NYSE:DAL) is a leading global airline. Of the big three U.S.-based airlines (Delta, United and American), we see Delta as the most competitively advantaged. We believe the company’s years of industry-leading operational performance and investments in the customer experience have established Delta as the premium brand in the industry. We also think its geographically optimal hubs, high local market share, robust loyalty program and unique corporate culture all support healthy returns on capital. Delta currently trades at 6x our estimate of normalized earnings per share. We believe this is an attractive valuation for a competitively advantaged and growing business in an out-of-favor industry.”
4. Norfolk Southern Corporation (NYSE:NSC)
Number of Hedge Fund Holders: 54
Norfolk Southern Corporation (NYSE:NSC) is one of the best freight stocks to buy now. The railroad company has been operational since 1980. It is responsible for transporting raw materials and finished goods including agriculture, forest, and consumer products such as soybeans, corn, fertilizers, food oils, flour, and sweeteners.
54 investors held stakes in Norfolk Southern Corporation (NYSE:NSC), collectively amounting to $1.2 billion. Among them, Citadel Investment Group was the most prominent investor and disclosed a stake worth $255.25 million. The stock is also present on analysts’ radars. Based on price targets from 26 analysts, the stock has a median price target of $274.43, representing an upside of 23.78% from its current price target of $221.7. The stock has a consensus buy rating.
The company aims to enhance productivity and deliver strong earnings in 2024. The company’s growth strategy is expected to bring industry competitive margins, within 100 to 200 basis points. The company also expects to deliver a sub-60% operating ratio within the next three to four years. On April 24, Norfolk Southern Corporation (NYSE:NSC) reported market-beating earnings. The company reported earnings per share of $3.29, outperforming EPS estimates by $0.75, and a revenue worth $3 billion. Analysts expect the company to grow its earnings by 17.09% in the next 12 months and 9.45% in the next five years.
Norfolk Southern Corporation (NYSE:NSC) has an impressive track record when it comes to shareholder returns. Between 2019 and 2022, the company has returned $10 billion to shareholders and has grown its EPS by 27%. The stock has a dividend yield of 2.43% as at the time of writing, and had $282 million in free cash flow at the end of Q1 2024.
3. FedEx Corporation (NYSE:FDX)
Number of Hedge Fund Holders: 56
FedEx Corporation (NYSE:FDX) ranks third on our list of the best freight stocks to buy now. The transport company is focused on transportation, e-commerce, and business services. FedEx Corporation (NYSE:FDX) is on its way to transforming into a carbon-neutral company by 2040. Under its freight segment, the company offers less-than-truckload freight services with various packages including FedEx Freight Priority, FedEx Freight Economy, and FedEx Freight Direct.
FedEx Corporation (NYSE:FDX) is highly popular among investors. At the end of the first quarter of 2024, 56 hedge funds were bullish on FedEx Corporation (NYSE:FDX) and disclosed positions worth $2.1 billion. Of those, Michael Larson’s Bill & Melinda Gates Foundation Trust was the top investor in the company and disclosed a stake worth $444.57 million.
During the first quarter of 2024, the company completed an accelerated share repurchase program of $1 billion. FedEx Corporation (NYSE:FDX) also plans to repurchase an additional $500 million of common stock in the fiscal fourth quarter of 2024, bringing the buyback total for fiscal 2024 to $2.5 billion. It also maintains a strong financial position with cash and cash equivalents worth $5.64 billion, surpassing its current long-term debt portion worth $67 million. The company’s financial position explains its ability to grow its cash dividend by 14.15% over the past 5 years. Here are some comments from Longleaf Partners Fund’s, managed by Southeastern Asset Management, Q1 2024 investor letter:
“FedEx Corporation (NYSE:FDX) – Global logistics company FedEx performed well for the period. The company beat consensus estimates in the quarter and showed material progress in its DRIVE cost reduction program that we have written about previously. FedEx also repurchased substantial stock in the quarter. Its 6% annualized repurchase pace is very strong compared to its history, and the company authorized another $5 billion share repurchase program. FedEx also lowered capital expenditures guidance for the fiscal year, further helping FCF generation. We believe the company is approximately halfway through its cost cutting program with more room to go that is still not appreciated by the market.”
The company’s broad portfolio of transportation, e-commerce, and business services sets it apart from its competitors. The company grew its earnings by 50.43% over the past 12 months. Analysts polled by Yahoo Finance expect the company to grow its earnings by 18.85% in 2024, and by 21.18% in 2025.
2. CSX Corporation (NYSE:CSX)
Number of Hedge Fund Holders: 70
CSX Corporation (NYSE:CSX) is one of the best freight stocks to buy now. The company is focused on rail, intermodal, and rail-to-truck transload services. CSX Corporation’s (NYSE:CSX) strengths lie in its high coal export volumes. In 2023, the coal volumes expanded by 3% and the company expects coal volumes to increase by 1.6% in the second quarter of 2024.
CSX Corporation (NYSE:CSX), was spotted on 70 investors’ portfolios at the end of Q1 2024. These funds disclosed collective stakes worth $3.83 billion in the company. As of March 31, Eric W. Mandelblatt’s Soroban Capital Partners is the most prominent shareholder in the company and has disclosed a position worth $1.04 billion.
On April 17, CSX Corporation (NYSE:CSX) reported strong earnings for the fiscal first quarter of 2024. The company generated a revenue of $3.68 billion, ahead of market consensus by $14.85 million. The company also reported EPS worth $0.46, beating estimates by $0.01. Analysts polled by Yahoo Finance expect the company’s earnings to grow by 4.86% in 2024 and 17.84% by 2025. Wall Street analysts hold a consensus buy opinion on the stock. Based on the price targets of 27 analysts, the stock’s median forecast of $39.78 represents an upside of 20.99% from its current level of $32.88.
The company also holds a strong financial position, with cash and cash equivalents worth $1.48 billion, as of March 31, 2024. In February, the company increased its quarterly dividend by 9.1% to $0.12 per share. CSX Corporation (NYSE:CSX) also distributed $500 million to shareholders through share repurchases and dividends in the first quarter of 2024.
While the company is still dealing with high coal costs and tough port situations, the company expects its profits to increase over time as it works to convert freight off the highway and maintain a strong asset portfolio. Analysts expect the company to grow its earnings by 5.15% this year and 10.90% over the next five years.
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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