5 Best Industrial Stocks to Buy According to Hedge Funds

1. Union Pacific Corporation (NYSE:UNP)

No of Hedge Fund Holders: 85

Union Pacific Corporation (NYSE:UNP) is a Washington, United States-based transport company. The company covers an extensive network of 31,800 route miles across 23 states. With a fleet of 8,300 locomotives, it operates as a line haul carrier. Union Pacific Corporation (NYSE:UNP) offers an annual forward dividend yield of 2.65% as of May 25.

Here’s what Matrix Asset Advisors said about Union Pacific Corporation (NYSE:UNP) in its Q1 2023 investor letter:

“During the quarter we added a new position in Union Pacific Corporation (NYSE:UNP). Union Pacific (UNP) is the 2nd largest railroad network in the United States just behind Burlington Northern Santa Fe. The firm operates in the Western, Midwestern, and Southern portions of the United States. 90% of UNP sales come from the US and 10% from Mexico. Over the past decade, railroads gained market share from the trucking industry because it costs 10-40% less to ship via rails than trucks. The company has a long history of consistent operating growth and profitability. The shares fell from a high of $278 in May of 2022 after the firm experienced operating challenges due to a slower macro environment and higher expenses.”

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