11 Best Freight Stocks To Buy Now

1. Union Pacific Corporation (NYSE:UNP) 

Number of Hedge Fund Investors: 78

Union Pacific Corporation (NYSE:UNP) is one of the largest and most recognized freight railroad companies in North America. The company operates an extensive network that spans 23 western states, with a network of over 32,000 miles of track. Union Pacific Corporation (NYSE:UNP) plays a critical role in the supply chain for numerous industries including automotive, chemicals, construction, and agricultural.

Union Pacific Corporation (NYSE:UNP) is focusing on expanding mainline and terminal capacities, constructing new sidings, and extending existing ones. These investments are particularly crucial in key growth areas such as the Pacific Northwest, where the company is enhancing its ability to handle soda ash and export grain, and in the Southwest, where it is improving its intermodal capabilities. Additionally, Union Pacific Corporation (NYSE:UNP) is investing in advanced technologies, such as GPS tracking for containers and rail pulse, to provide greater transparency and efficiency in its operations. These investments are aimed to improve service reliability and enhance the customer experience by providing real-time tracking and better communication.

Union Pacific Corporation (NYSE:UNP) is also expanding its service offerings to meet the evolving needs of its customers. For example, the company recently started a new domestic intermodal service that has successfully reduced transit times from Southern California to the Chicago area by two days. This improvement has attracted new customers and solidified existing relationships. Additionally, Union Pacific Corporation (NYSE:UNP) is extending its network reach through strategic partnerships with other railroads and short lines.

While we acknowledge the potential of Union Pacific Corporation (NYSE:UNP) to grow, 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 more promising than UNP but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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