12 Best Freight Stocks to Buy According to Hedge Funds

8. C.H. Robinson Worldwide, Inc. (NASDAQ:CHRW)

Number of Hedge Fund Holders: 35

​​C.H. Robinson Worldwide, Inc. (NASDAQ:CHRW) is a Minnesota-based third-party logistics (3PL) company that provides a diversified base of transportation services, including LTL, truckload, air, ocean shipping, and intermodal. The company’s main competitive advantage is its wide network of carriers as well as its proprietary technology platform (Navisphere), which facilitates supply chain management and visibility for clients. Besides that, CHRW also operates a subsidiary that specializes in sourcing and distribution of fresh food products to retail and food service customers.

C.H. Robinson Worldwide, Inc. (NASDAQ:CHRW) is navigating a prolonged freight recession, with the current downturn lasting 37 months in an industry that typically experiences 18-24 month cycles. Despite this challenging environment, the company remains committed to its previously outlined strategic plan until 2026. The good news is that CHRW’s asset-light model provides flexibility and agility to deal with market fluctuations, while its strategy allows the company to outperform the market in volume regardless of market conditions. The company has also implemented a new operating model that has driven significant productivity improvements, with a 15% increase in productivity achieved in both 2023 and 2024.

C.H. Robinson Worldwide, Inc. (NASDAQ:CHRW) has demonstrated success in decoupling headcount growth from volume growth in its Global Forwarding business, growing revenue while reducing headcount by 10% and generating more than 15% productivity in 2024. The company expects to replicate this success in its North American Surface Transportation business, leveraging its advanced technology stack and improved processes. Management has committed to generating mid-30% operating margins at the enterprise level during mid-cycle conditions, significantly above the current levels. With strong guidance in place, CHRW is one of the best freight stocks to consider.