In this article we will take a look at the 5 transportation as a service stocks to buy. For a detailed analysis of the transport sector, go directly to 10 Transportation as a Service Stocks to Buy.
5. United Parcel Service, Inc. (NYSE: UPS)
Number of Hedge Fund Holders: 48
United Parcel Service, Inc. (NYSE: UPS) is a Washington-based company in the package delivery and supply chain management business. It was founded in 1907 and is ranked fifth on our list of 10 transportation as a service stocks to buy. The company offers services in more than 200 countries and operates more than 127,000 package delivery vehicles. It has a fleet of aircraft and owns more than 58,000 containers for transportation of goods. UPS stock has returned more than 131% to investors over the past twelve months.
On May 3, United Parcel Service, Inc. (NYSE: UPS) was given an Outperform rating by investment advisory Wolfe Research, an upgrade from Peer Perform, with a price target of $239. UPS stock has been affected in recent days as news of the divorce of shareholders Bill and Melina Gates leads to uncertainty about the couple’s business affairs.
Out of the hedge funds being tracked by Insider Monkey, Washington-based Bill & Melinda Gates Foundation Trust is a leading shareholder in the firm with 4.5 million shares worth more than $762 million.
Saturna Capital Corporation, in its Q4 2020 investor letter, mentioned United Parcel Service, Inc. (NYSE: UPS). Here is what Saturna Capital Corporation has to say about United Parcel Service, Inc. in its letter:
“UPS is a new holding in the Fund, and we are excited about the opportunity for new management to improve operating metrics after several years of inconsistent performance.”
4. Union Pacific Corporation (NYSE: UNP)
Number of Hedge Fund Holders: 68
Union Pacific Corporation (NYSE: UNP) is a Nebraska-based railroad company founded in 1862. It is ranked fourth on our list of 10 transportation as a service stocks to buy. The firm operates over 32,313 route miles that link the Pacific and Gulf ports with gateways inside the United States. UNP stock has returned more than 43% to investors over the past twelve months. The company has a market cap of more than $149 billion. The company provides railroad and freight transportation services to businesses across the US.
Union Pacific Corporation (NYSE: UNP) stands to benefit from a proposed national infrastructure overhaul plan of President Biden. The share price of the firm has also soared in recent weeks as business activity resumes following easing of COVID-19 lockdown restrictions.
At the end of the fourth quarter of 2020, 68 hedge funds in the database of Insider Monkey held stakes worth $3.5 billion in the firm, down from 74 in the preceding quarter worth $3.9 billion.
Vltava Fund, in its Q1 2021 investor letter, mentioned Union Pacific Corporation (NYSE: UNP). Here is what Vltava Fund has to say about Union Pacific Corporation in its letter:
“There was a slight change in Vltava Fund’s portfolio in the first quarter. We sold shares of Union Pacific. It was one of three stocks we bought a year ago at the market bottom. Although from a P/E viewpoint this was one of our most expensive purchases ever, the shares worked out quite well, and, when they were more than 90% higher at the beginning of this year, we decided to take profit and put the money into stocks with more attractive valuations.”
3. DoorDash, Inc. (NYSE: DASH)
Number of Hedge Fund Holders: 38
DoorDash, Inc. (NYSE: DASH) is a California-based company that delivers food. It was founded in 2012 and is placed third on our list of 10 transportation as a service stocks to buy. The firm went public in late 2020 with a market valuation of $72 billion. Since its founding in 2012, it has captured a huge chunk of the food delivery market in the US. The firm also gained in prominence during the pandemic as food delivery businesses took off, and DASH reported that sales had tripled in 2020 compared to the previous year.
On April 27, investment firm Needham started coverage on DoorDash, Inc. (NYSE: DASH) with a Buy rating and a price target of $175. Bernie McTernan, an analyst at the firm, said that the company was a leader in the restaurant delivery sector, a position that had solidified during the pandemic. DoorDash stock was up close to 0.3% after the ratings update.
Out of the hedge funds being tracked by Insider Monkey, New York-based investment firm Coatue Management is a leading shareholder in the firm with 8.7 million shares worth more than $1.2 billion.
2. FedEx Corporation (NYSE: FDX)
Number of Hedge Fund Holders: 63
FedEx Corporation (NYSE: FDX) is a Tennessee-based delivery services company founded in 1971. It is placed second on our list of 10 transportation as a service stocks to buy. FedEx stock has returned more than 162% to investors over the past twelve months. The firm has operations in 220 countries and offers express transportation, small-package ground delivery, and freight transportation. It markets supply chain management solutions and global ocean and air freight forwarding services.
On May 5, FedEx Corporation (NYSE: FDX) announced that it would be becoming the official sponsor of popular European footballing competition UEFA Champions League for three years. FedEx shares jumped more than 1% after the announcement.
At the end of the fourth quarter of 2020, 63 hedge funds in the database of Insider Monkey held stakes worth $2 billion in the firm, down from 71 in the preceding quarter worth $2.5 billion.
In its Q4 2020 investor letter, Longleaf Partners Fund highlighted a few stocks and FedEx Corp (NYSE:FDX) is one of them. Here is what the fund said:
“FedEx (76%, 3.69%; 3%, 0.29%), the global logistics company, was the top contributor in 2020 after an outstanding year for the business that wasn’t simply the result of COVID, even if the company has been a strong beneficiary of the rapid societal changes driven by it. The share price returned over 85% in the last six months. Over the last quarter, Ground revenues increased 38%, while operating income grew 61%, despite another round of heavy investments weighing down margins temporarily into the single-digits. The company is indispensable for the United States’ e-commerce deliveries and is reaping the rewards of its investments in previous years to gear up for 7-day delivery. The Express segment is still benefitting from fewer passenger flights diminishing competing underbelly capacity. Despite the sharp appreciation, the stock trades at a reasonable mid-teens P/E multiple on forward earnings, and we expect the value to grow double-digits annually from here. FedEx has done its part to give back this year in the face of COVID. Since the onset of the pandemic, FedEx has delivered more than 55 kilotons of personal protective equipment, including more than two billion face masks, and more than 9,600 humanitarian aid shipments around the globe. More recently, FedEx was tapped to deliver the first wave of Pfizer-BioNTech vaccines across the US, and its infrastructure will be critical to successfully disseminating the vaccines.”
1. Uber Technologies, Inc. (NYSE: UBER)
Number of Hedge Fund Holders: 135
Uber Technologies, Inc. (NYSE: UBER) is a California-based technology firm that primarily runs a ride-hailing service. It was founded in 2009 and is ranked first on our list of 10 transportation as a service stocks to buy. Uber has returned more than 65% to investors over the past twelve months and the stock has been gaining as the vaccine rollout enables for business activities to resume. In addition to ride-hailing, the firm offers food delivery, package delivery, couriers, and freight transportation as well.
Uber Technologies, Inc. (NYSE: UBER) posted encouraging earnings results for the first quarter of 2021 in March with gross bookings, food delivery revenue, and mobility trends improving and boding well for the rest of the fiscal year.
Out of the hedge funds being tracked by Insider Monkey, California-based investment firm Altimeter Capital Management is a leading shareholder in the firm with 28 million shares worth more than $1.4 billion.
Our calculations show that Uber Technologies, Inc. (NYSE: UBER) ranks 12th in our list of the 30 Most Popular Stocks Among Hedge Funds.
You can also take a peek at 10 Best Travel Stocks to Buy Right Now, and 10 Best Automotive Stocks to Invest in Now.
