12 Best Freight Stocks to Buy According to Hedge Funds

9. Expeditors International of Washington, Inc. (NYSE:EXPD)

Number of Hedge Fund Holders: 35

​Expeditors International of Washington, Inc. (NYSE:EXPD) provides a full suite of global logistics services to help customers strategically move goods. The company operates under a third-party logistics model – they purchase cargo space from carriers (such as airlines, ocean shipping lines, and trucking lines) and resell that space to their customers. EXPD also provides customs brokerage, order management, storage, warehousing and distribution, transit that involves temperature controls, insurance for freight operations, and other auxiliary services.

​​Expeditors International of Washington, Inc. (NYSE:EXPD) demonstrated strong financial performance in Q4 2024, with diluted EPS increasing 54% YoY. The company achieved significant revenue growth of 30% to $3.0 billion, driven by increased airfreight tonnage of 11% and ocean container volume growth of 14%. The strong performance was attributed to high demand from Asia, substantial e-commerce business, and increased demand for technology products, amid limited air capacity. Ocean capacity was impacted by front-loading due to potential port labor actions and longer transit times as carriers avoided the Red Sea.

However, Expeditors International of Washington, Inc. (NYSE:EXPD) also faced challenges, including rising labor costs and inflationary pressures. Looking ahead, management remains focused on strategic initiatives to drive growth, including expanding its customs brokerage offering in Asia and enhancing its technology capabilities. Once the short-term headwinds are navigated, EXPD is well-positioned to capitalize on the economic growth expected for the rest of the “Roaring 2020s” as the company’s full-suite business model allows it to capture opportunities at all levels and minimize its sensitivity to the economic cycles. EXPD has outperformed the broad market since the beginning of the year, which makes it one of the best freight stocks to buy now.