7 Best Transportation Stocks To Invest In Now

2. Union Pacific Corporation (NYSE:UNP)

Number of Hedge Fund Holders: 82

Union Pacific Corporation (NYSE:UNP) operates one of the largest freight railroad networks in the United States and primarily serves the western half of the country. It is the parent company of the Union Pacific Railroad, a leading freight carrier that plays a significant role in the transportation of goods across the U.S. It holds a dominant position in rail freight transport west of the Mississippi River. It is one of the best transportation stocks to invest in.

The company has expanded over the years through strategic mergers and acquisitions, including the Missouri Pacific Railroad, the Southern Pacific Transportation Company, and the Chicago and North Western Railway. The company’s rail network is important for transporting agricultural products, industrial goods, and energy resources across the nation.

On September 20, TipRanks reported that BMO Capital’s Fadi Chamoun reaffirmed a Buy rating on Union Pacific (NYSE:UNP) with a $275 price target. The analyst sees strong growth potential for the company if the freight market improves and praised the company’s leadership and operational focus.

Chamoun believes that the company’s conservative growth estimates may be too cautious, which could result in better-than-expected earnings. Despite minor adjustments to its buyback plan, the analyst’s outlook remains positive.

On the same day, several other analysts maintained a Buy-equivalent rating on Union Pacific’s (NYSE:UNP) stock. Jonathan Chappell from Evercore ISI and RBC Capital analyst Walter Spracklin maintained a Buy rating on the company with a price target of $254 and $275, respectively.

In Q2, 82 hedge funds had stakes worth $4.46 billion in Union Pacific (NYSE:UNP). With 6.14 million shares worth nearly $1.4 billion, Fisher Asset Management is the company’s most prominent shareholder, as of June 30.