12 Best Freight Stocks to Buy According to Hedge Funds

1. FedEx Corporation (NYSE:FDX)

Number of Hedge Fund Holders: 66

FedEx Corporation (NYSE:FDX) is a close competitor of UPS as it closely matches the scale and capabilities of its rival – it operates one of the largest express air fleets with coverage of more than 200 countries. The company provides both domestic and international package delivery, LTL, Truckload, brokerage, and contract logistics services. FDX also leverages advanced analytics and machine learning capabilities to offer real-time tracking, visibility and improve the speed and accuracy of deliveries.

FedEx Corporation (NYSE:FDX) delivered a strong performance in its latest Q3 2025, with revenue growing 2% YoY for the first time this fiscal year while achieving 12% adjusted operating income growth despite significant headwinds. The company successfully achieved $600 million in DRIVE savings during the quarter, continuing its progress toward structural cost reduction goals. FDX also showed robust performance with adjusted operating income up 17%, despite challenges from the USPS contract expiration and severe weather events.

Looking ahead, FedEx Corporation (NYSE:FDX) cited an uncertain demand environment and higher-than-expected inflationary pressures. The company remains focused on transformation initiatives, including DRIVE, Network 2.0, and Tricolor, which are expected to create long-term value and offset some of the short-term headwinds. Despite current challenges, notable progress was made in Europe, with the best service levels seen in years driving profitable share growth, and the company remains on track to achieve $600 million in DRIVE savings from Europe by fiscal year-end. The company’s strategic initiatives have fundamentally changed its structural costs and positioned it to expand into new market segments profitably.

Overall, FedEx Corporation (NYSE:FDX) ranks first among the 12 best freight stocks according to hedge funds. While we acknowledge the potential of FDX, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than FDX but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.

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