Trump’s tariffs threat is making the broader market more volatile, but some stocks in the transportation industry are benefiting from it as frontloading increases and shipping rates surge. Moreover, the past few years have been solid for most types of transportation stocks in the energy industry due to shipping getting more expensive after February 2022 and even more expensive as using the Suez Canal became risky in late 2023.
Obviously, it’s not just energy transportation stocks that stand to benefit. Airline stocks have struggled recently, but as interest rates come down lower, some are already starting to post solid gains. 2025 could be a breakout year for the transportation industry as a whole. As such, it’s worth looking into those that have delivered the most gains so far in 2025.
A large dry bulk vessel navigating a busy seaport, a testament to the success of the company’s marine transportation services.
Methodology
For this article, I screened the top-performing transportation software stocks year-to-date. Stocks that I have covered recently will be excluded from this list.
I will also mention the number of hedge fund investors in these stocks. Why are we interested in the stocks that hedge funds invest in? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points. (see more details here).
15. Union Pacific Corp (NYSE:UNP)
Number of Hedge Fund Holders In Q3 2024: 78
Union Pacific Corp (NYSE:UNP) is a rail freight transportation company.
The stock is up significantly so far in 2025 as it posted solid Q4 2024 earnings. It posted EPS of $2.91, which surpassed analyst estimates and grew 7.4% year-over-year. Moreover, management is optimistic about 2025 and features a $4.5 billion share repurchase plan, along with a CapEx target of $3.4 billion.
For the current fiscal year, ending in December 2025, analysts expect Union Pacific’s earnings per share to grow 8.3% year-over-year to $12.01.
The consensus price target of $261.4 implies 4.87% upside.
UNP stock is up 9.29% year-to-date.
14. Norfolk Southern Corp (NYSE:NSC)
Number of Hedge Fund Holders In Q3 2024: 47
Norfolk Southern Corp (NYSE:NSC) is a raw materials and finished goods rail transportation company.
The stock is up significantly so far in 2025 as it posted solid Q4 performance and optimism from the company’s CEO. Q4 EPS came in at $3.23 per share up from $2.32 in in the prior year. Norfolk Southern is running “tighter and faster.” The operating ratio improved to 65.8% for the full year.
The company has a significant capital expenditure plan of $2.2 billion for 2025, and while it did pause share buybacks due to the East Palestine incident, it plans to resume that too.
The consensus price target of $276.11 implies 7.9% upside.
NSC stock is up 9.66% year-to-date.
13. SkyWest Inc (NASDAQ:SKYW)
Number of Hedge Fund Holders In Q3 2024: 27
SkyWest Inc (NASDAQ:SKYW) is a regional airline company.
The stock is up significantly so far in 2025 as it reported solid 2024 financial results. SkyWest reported a substantial increase in net income for 2024 at $323 million, which is up from just $34 million in 2023. Moreover, revenue increased to $944 million in Q4 2024, up 26% from $752 million in Q4 2023.
SkyWest is expected to post earnings of $2.01 per share for the current quarter. This should translate to a year-over-year increase of 38.6%. Moreover, the consensus sales estimate of $926.38 million for the current quarter points to a year-over-year growth of 15.3%.
SkyWest anticipates its 2025 GAAP EPS could be around $9 per share if they are successful in executing the opportunities in front of them.
The consensus price target of $109.75 implies 0.47% downside.
SKYW stock is up 10.13% year-to-date.
12. XPO Inc (NYSE:XPO)
Number of Hedge Fund Holders In Q3 2024: 48
XPO Inc (NYSE:XPO) is a freight transportation company.
The stock is up significantly so far in 2025 as it reported strong Q4 2024 results. Q4 diluted earnings per share from continuing operations increased to $0.63 from $0.49 in 2023, and adjusted diluted earnings per share rose to $0.89 from $0.77. Full-year 2024 diluted earnings per share reached $3.23. This is up from $1.62 in 2023.
In addition, the potential sale of XPO’s European transportation division for $2 billion could allow the company to focus on its North American operations and generate substantial cash proceeds.
The consensus price target of $161.13 implies 10.63% upside.
XPO stock is up 11.05% year-to-date.
11. Copa Holdings SA (NYSE:CPA)
Number of Hedge Fund Holders In Q3 2024: 17
Copa Holdings SA (NYSE:CPA) is an airline company based in Panama.
The stock is up significantly so far in 2025 as it reported a substantial year-over-year increase in passenger traffic and capacity for January 2025.
Revenue passenger miles (RPMs) rose by 23.6%, while available seat miles (ASMs) increased by 22.1%. This resulted in a higher load factor of 86.4%, which is up from 85.3% in January 2024.
Plus, it posted a Q4 2024 net profit of $166.2 million and cash grew to $1.4 billion vs. $915 million last year.
The consensus price target of $153.29 implies 56.89% upside.
CPA stock is up 11.27% year-to-date.
10. Alaska Air Group Inc (NYSE:ALK)
Number of Hedge Fund Holders In Q3 2024: 28
Alaska Air Group Inc (NYSE:ALK) is an airline company based in Alaska. The name is pretty self-explanatory.
The stock is up significantly so far in 2025 as it successfully completed its Hawaiian Airlines acquisition late last year and that acquisition has been bearing fruit.
It has expanded its network to over 140 destinations and the synergies it has unlocked will allow it to post $1 billion in incremental pretax profit over three years.
For 2024, it posted $11.7 billion in revenue and adjusted pretax margins of 7.1%. It also initiated a $1 billion share repurchase program in January this year.
The consensus price target of $74.86 implies 1.05% downside.
ALK stock is up 16.97% year-to-date.
9. Old Dominion Freight Line Inc (NASDAQ:ODFL)
Number of Hedge Fund Holders In Q3 2024: 38
Old Dominion Freight Line Inc (NASDAQ:ODFL) is a less-than-truckload motor carrier company.
The stock is up significantly so far in 2025 as the Institute for Supply Management’s Purchasing Managers’ Index (PMI) moves into positive territory for the first time in two years and the manufacturing sector shows signs of more growth.
The company’s CEO is optimistic about 2025 under the new administration and Old Dominion also exceeded consensus estimates in Q4 2024 with $1.23 in EPS. Revenue did decline year-over-year, but the pricing power has led to a lot of optimism here.
Furthermore, Old Dominion increased its dividend by 30% last year.
The consensus price target of $203.33 implies 1.46% downside.
ODFL stock is up 16.97% year-to-date.
8. flyExclusive Inc (NYSEAMERICAN:FLYX)
Number of Hedge Fund Holders In Q3 2024: 7
flyExclusive Inc (NYSEAMERICAN:FLYX) is a private aviation company.
The stock is up significantly so far in 2025 as it announced an agreement to acquire the aviation business of Jet.AI in an all-stock transaction that will give flyExclusive more growth capital.
Investors think this could boost its growth as both companies operate the same type of aircraft. It also has onboarded new Bombardier Challenger 350s and got a $50 million financing commitment from Hexstone Capital to support the Jet.AI deal.
The acquisition is expected to close in the second quarter of 2025.
FLYX stock is up 18.10% year-to-date.
7. Sun Country Airlines Holdings Inc (NASDAQ:SNCY)
Number of Hedge Fund Holders In Q3 2024: 15
Sun Country Airlines Holdings Inc (NASDAQ:SNCY) is a low-cost air carrier.
The stock is up significantly so far in 2025 as it announced an amended agreement with Amazon in mid-2024. This will extend the company’s partnership with Amazon through 2030 with options until 2037.
It also includes the addition of eight new Boeing 737-800 freighter aircraft to its cargo fleet, which will increase it from 12 to 20 by Q3 2025.
Moreover, Sun Country reported great Q4 2024 results. Its revenue grew by 6.1% year-over-year to $260.4 million. Net income increased by 138% to $13.4 million.
The consensus price target of $19.29 implies 11.61% upside.
SNCY stock is up 18.52% year-to-date.
6. Frontier Group Holdings Inc (NASDAQ:ULCC)
Number of Hedge Fund Holders In Q3 2024: 15
Frontier Group Holdings Inc (NASDAQ:ULCC) is the parent company of Frontier Airlines.
The stock is up significantly so far in 2025 as it posted strong Q4 2024 earnings. EPS exceeded expectations and came in at $0.23 compared to a forecast of just $0.04. This was also driven by its quarterly revenue growing 12% year-over-year to $1 billion.
Also, Frontier has provided optimistic guidance for 2025, targeting double-digit pre-tax margins by summer and adjusted diluted EPS of at least $1 for the full year. In turn, analysts are now much more bullish, though they are yet to up their price targets.
The consensus price target of $7.41 implies 16.32% downside.
ULCC stock is up 24.47% year-to-date.
5. FreightCar America Inc (NASDAQ:RAIL)
Number of Hedge Fund Holders In Q3 2024: 8
FreightCar America Inc (NASDAQ:RAIL) makes railcars and railcar components.
The stock is up significantly so far in 2025 after it reported robust results and announced an agreement to redeem all outstanding preferred shares through a new term loan. In January 2025, FreightCar America announced a $115 million term loan to redeem all outstanding Series C Preferred Shares and settle accrued dividends.
In turn, it will reduce FreightCar’s cost of capital by 40% and save $9.2 million annually. This is on top of Q3 showing 83% year-over-year revenue growth to $113.3 million and a raised adjusted EBITDA outlook to between $37 million to $39 million.
The consensus price target of $14.88 implies 33.21% upside.
RAIL stock is up 24.67% year-to-date.
4. Jayud Global Logistics Ltd (NASDAQ:JYD)
Number of Hedge Fund Holders In Q3 2024: N/A
Jayud Global Logistics Ltd (NASDAQ:JYD) is a company that specializes in end-to-end cross-border supply chain solutions.
The stock is up significantly so far in 2025 as it has been doing acquisitions in logistics facilities and brokerage firms. In late 2024, it acquired stakes in two California warehouses (20% in a 70,000 sq.ft. Rialto facility and 49% in a 50,000 sq.ft. Chino facility).
It also purchased 10% of LD Global Logistics Inc. This is a licensed customs broker that has trucking assets. The company ended up issuing 3.37 million shares to fund the acquisitions, but investors think this can pay off in the long run.
Earlier, it extended its logistics agreements with Lenovo (service parts logistics) and Pinduoduo (overseas first-mile logistics for U.S./European markets).
JYD stock is up 25% year-to-date.
3. Proficient Auto Logistics Inc (NASDAQ:PAL)
Number of Hedge Fund Holders In Q3 2024: 13
Proficient Auto Logistics Inc (NASDAQ:PAL) is a freight company with auto transportation and logistics services.
The stock is up significantly so far in 2025 as Q4 2024 revenue rose 4% quarter-over-quarter to $95.1 million. Adjusted operating income improved to $1.7 million and is up $1.1 million from Q3. It also reduced its net leverage ratio to 1.6x by year-end 2024 ($82.4 million debt vs. $15.8 million cash).
Analysts are now very optimistic about PAL stock and it has seen its price targets go up recently.
The consensus price target of $16 implies 48.15% upside.
PAL stock is up 33.83% year-to-date.
2. Freightos Ltd (NASDAQ:CRGO)
Number of Hedge Fund Holders In Q3 2024: 4
Freightos Ltd (NASDAQ:CRGO) is a digital freight marketplace and SaaS platform.
The stock is up significantly so far in 2025 as it launched its Freightos Index Linking Toolkit recently. It introduced dynamic contract pricing tied to its proprietary Freightos Baltic Index (FBX®) and Freightos Air Index (FAX).
Earlier in the year, it reported year-over-year revenue growth of 21% in Q3 2024. This growth was fueled by increased adoption of its SaaS platform (Freightos AcceleRate™) by major players like CEVA Logistics and Panasonic, and a 26% year-over-year increase in marketplace transactions.
On top of that, tariffs have triggered frontloading of shipments and it is boosting companies like Freightos even more.
The consensus price target of $4.75 implies 15.01% upside.
CRGO stock is up 35.41% year-to-date.
1. Pitney Bowes Inc (NYSE:PBI)
Number of Hedge Fund Holders In Q3 2024: 28
Pitney Bowes Inc (NYSE:PBI) is a SaaS shipping solutions company.
The stock is up significantly year-to-date as it finalized the sale of its underperforming Global E-commerce segment to Hilco Global in late 2024. This eliminated annual losses of $136 million and will allow the company to focus more on higher-margin Presort and SendTech businesses.
In fact, management expects adjusted EBIT to surge about 20% year-over-year to $450–$480 million in 2025.
As for Q4 2024, it beat earnings expectations and upgraded guidance. It reported Q4 adjusted EPS of $0.32 vs. $0.16 estimates. This is a 60% improvement year-over-year.
In addition, Pitney Bowes announced a $150 million share repurchase program and raised dividends to $0.06 per share.
Management provided strong 2025 guidance: $1.10–$1.30 adjusted EPS and $330–$370 million free cash flow.
PBI stock is up 46.27% year-to-date.
While we acknowledge the potential of PBI as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than PBI but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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