12 Best Freight Stocks to Buy According to Hedge Funds

5. J.B. Hunt Transport Services, Inc. (NASDAQ:JBHT)

Number of Hedge Fund Holders: 47

J.B. Hunt Transport Services, Inc. (NASDAQ:JBHT) is a transportation company that offers a diversified range of services, ranging from truckload shipping and intermodal transport to auxiliary solutions like dedicated contract services and final mile services. JBHT uses its own innovative technology platform (J. B. Hunt 360) to make its operations more transparent and help clients manage some of the processes themselves. The company is also known for continuous innovation and reinvestments into its operations to remain competitive and meet the evolving needs of its clients.

J.B. Hunt Transport Services, Inc. (NASDAQ:JBHT) delivered strong operational performance in 2024 despite challenging market conditions, with particular success in service execution and safety performance. The company achieved record Intermodal volumes for two consecutive quarters while maintaining high service levels, demonstrating operational excellence during peak season. The Dedicated Contract Services business showed remarkable resilience with solid visibility for future growth, though some fleet losses are expected to continue through early Q2 2025. Financial results for Q4 2024 showed revenue declining 5% YoY, while operating income increased 2%, and diluted EPS increased 4%.

Looking ahead to 2025, J.B. Hunt Transport Services, Inc. (NASDAQ:JBHT) faces continued inflationary cost pressures in insurance premiums and people costs, despite record safety performance. Management is focused on improving margins and returns on capital, with a clear strategy to scale into their investments and grow the business. The company’s strategic investments, including the acquisition of Walmart’s Intermodal assets, are expected to enhance future earnings potential. Capital expenditures for 2025 are projected between $700 million and $900 million, up from $674 million in 2024, reflecting the company’s commitment to growth. We include JBHT on our list of best freight stocks as its strong reinvestments into the business position the company well for future growth.