5 Best Logistics Stocks to Buy

1. Union Pacific Corporation (NYSE:UNP)

Number of Hedge Fund Holders: 85

Dollar Value of Hedge Fund Holdings: $4,042,787,000

Union Pacific Corporation (NYSE:UNP) is an Omaha, Nebraska-based Class I freight railroad corporation with an extensive railroad network that expands across 32,000 miles with a roster of 8,300 locomotives. This makes it the biggest publicly listed railroad company in the US.

Union Pacific Corporation (NYSE:UNP) plays an important part in exporting goods to Canada and Mexico as well and is considered a backbone of the American economy. The company’s only major competitor in the Class I freight railroad services is Warren Buffett’s Berkshire Hathaway Inc.’s (NYSE:BRK-B) owned BNSF Railway.

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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