12 Best Freight Stocks to Buy According to Hedge Funds

7. Forward Air Corporation (NASDAQ:FWRD)

Number of Hedge Fund Holders: 37

​​Forward Air Corporation (NASDAQ:FWRD) is a global leader in asset-light transportation services, operating across the Americas, Europe, and Asia. The company provides LTL, truckload, freight brokerage, and supply chain services to a diverse range of customers in high growth end markets. FWRD also offers premium services that require precise execution and tight deadlines – special handling, expedited transit, and rapid deliveries of strategic loads. The asset-light strategy is aimed at minimizing investments in equipment and facilities, thus reducing CapEx requirements and making the company more efficient.

Forward Air Corporation (NASDAQ:FWRD) reported a consolidated EBITDA of $308 million for 2024, reaching the upper end of their guidance range, which was facilitated by the successful execution of more than $100 million in annualized savings from synergies and cost-out actions while maintaining high customer satisfaction levels. The Q4 2024 performance was driven by consistent results in the Intermodal segment and strong performance from the Omni Logistics segment, which achieved its best quarterly reported EBITDA since the transaction. However, the Expedited Freight segment faced challenges due to decreased volumes and a pricing strategy that prioritized growth over profitability.

Looking ahead, Forward Air Corporation (NASDAQ:FWRD) is transitioning from integration to transformation, focusing on IT systems rationalization, data quality improvement, and establishing a global shared services organization. The transformation efforts, which will continue into 2026, include consolidating multiple ERP systems into a unified IT network to reduce redundancies and enhance efficiencies. Management believes the company is in a good place with legacy customers and continues to service them extremely well. With 37 hedge funds owning the stock, FWRD ranks 7^th on our list of best freight stocks.