12 Best Freight Stocks to Buy According to Hedge Funds

2. United Parcel Service, Inc. (NYSE:UPS)

Number of Hedge Fund Holders: 59

​​United Parcel Service, Inc. (NYSE:UPS) is a global powerhouse in package delivery and supply chain management – most of the products you encounter and use daily are probably handled by the company at some point. Operating one of the world’s largest air and ground networks, UPS covers more than 220 countries and territories. Its services are divided into US Domestic Package, International Package, and Supply Chain & Freight, covering everything from day-definite deliveries to customs brokerage and logistics solutions.

United Parcel Service, Inc. (NYSE:UPS) delivered strong Q4 results with revenue increasing 1.5% and operating profit growing 11.2%. The company announced significant strategic changes, including an agreement to reduce volume from their largest customer, Amazon, by more than 50% by 2H 2026 and the complete insourcing of SurePost delivery operations. UPS is also launching “Efficiency Reimagined” initiatives expected to drive approximately $1 billion in savings and plans to close up to 10% of buildings and reduce vehicle and aircraft fleets as part of network reconfiguration.

For 2025, United Parcel Service, Inc. (NYSE:UPS) plans to focus on growing in higher-value segments. Healthcare is a hyper-promising growth direction for the company, as 2024 revenue reached $10.5 billion with plans to grow to $20 billion by 2026. The company maintained strong financial discipline, with $10.1 billion in cash from operations in 2024, and returned $5.9 billion to shareholders through dividends and share repurchases. UPS expects to expand the US Domestic operating margin in every quarter of 2025, targeting a 12% operating margin by the fourth quarter of 2026. With strong guidance ahead, UPS ranks 2^nd on our list of best freight stocks to buy.