In this article, we will look at the 11 Best Transportation Stocks to Buy According to Wall Street Analysts.
On February 19, Alli McCartney, UBS Private Wealth Management managing director, appeared on CNBC’s ‘Squawk Box’ to talk about the latest market trends, state of the economy, and the market outlook.
She stated that the earnings season has been fantastic again. The three things that are driving the market and trading activity right now, according to her, include disruption, which is the creative destruction you are starting to see concern priced into AI, divergence, which is the divergence of opinion about policy within the Fed which is very meaningful for both interest rate stability and for the future of equities, and dispersion, as we have an S&P right now that is about flat, it has been trading within a 200 point range of all time highs.
READ ALSO: 10 Best Sugar Stocks to Buy According to Hedge Funds and 10 Best Pet Stocks to Buy According to Hedge Funds.
However, she added that when one looks under the hood, there are about 250 stocks up 5% or more, and about 200 up 10% or more. These three things are not going to be resolved in the short term, and so after several years of 20%+ growth directionally up and very little volatility, McCartney thinks that we should expect more volatility and invest along those lines, being diversified and discrete about where and what we are investing in, instead of buying the whole haystack.
With these trends in view, let’s look at the best transportation stocks to buy according to Wall Street analysts.
Our Methodology
We sifted through the Finviz stock screener and financial media reports to compile a list of the best transportation stocks that analysts are bullish on and selected the top 11 most popular among elite hedge funds as of Q3 2025. We sourced the hedge fund data from Insider Monkey’s database. The stocks are ranked in ascending order of hedge fund sentiment.
Note: All data was recorded on February 20.
Why are we interested in the stocks that hedge funds pile into? 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 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
11 Best Transportation Stocks to Buy According to Wall Street Analysts
11. Polestar Automotive Holding UK PLC (NASDAQ:PSNY)
Analyst Upside: 30.66%
Number of Hedge Fund Holders: 5
Polestar Automotive Holding UK PLC (NASDAQ:PSNY) is one of the best transportation stocks to buy according to Wall Street analysts. On February 18, Polestar Automotive Holding UK PLC (NASDAQ:PSNY) was downgraded by Cantor Fitzgerald to Underweight from Neutral without a price target. The firm supported the downgrade with several factors, including its lower delivery expectations, the recent share price appreciation, the company’s additional capital needs, and its “unclear” autonomy strategy for the downgrade.
Cantor further stated that Polestar Automotive Holding’s (NASDAQ:PSNY) business update showed that it now anticipates low double-digit volume growth in fiscal 2026, down from the prior target of 30%-35% compound annual retail sales volume growth from 2025 to 2027. According to the firm, the new volume guidance can result in a 16% cut to 2026 revenue estimates, which is “disappointing”.
The rating update came the same day Polestar Automotive Holding UK PLC (NASDAQ:PSNY) announced the “largest model offensive in its history”, with four new cars planned in the next three years. By 2028, the company plans to bring the Polestar 5, Polestar 4, Polestar 2, and Polestar 7 to the market. It also reported that with a disciplined approach, it anticipates low double-digit volume growth and a continued retail network expansion of 30% in 2026.
Polestar Automotive Holding UK PLC (NASDAQ:PSNY) is a Swedish electric performance car brand involved in developing, commercializing, marketing, and selling battery electric vehicles and related technology solutions. The company’s offerings include the following: Polestar 2 (PS2), a premium fast-back sedan, the Polestar 3 (PS3), a luxury aero sport-utility vehicle, the Polestar 4 (PS4), a premium sport utility vehicle, the Polestar 5 (PS5), a luxury sport grand-touring sedan, and the Polestar 6 (PS6), a luxury roadster.
10. XPeng Inc. (NYSE:XPEV)
Analyst Upside: 55.01%
Number of Hedge Fund Holders: 22
XPeng Inc. (NYSE:XPEV) is one of the best transportation stocks to buy according to Wall Street analysts. On February 8, JPMorgan cut the price target on XPeng Inc. (NYSE:XPEV) to $34 from $50 while maintaining an Overweight rating on the shares. The firm told investors that it sees the auto industry in China underperforming in 2026, as underlying passenger vehicle growth slips to negative territory.
In a separate development, XPeng Inc. (NYSE:XPEV) announced its vehicle delivery results for January 2026 on February 1, reporting that it delivered a total of 20,011 vehicles in the month. The deliveries are anticipated to lower life-cycle greenhouse gas emissions by more than 300,000 tons, which translates to the carbon absorption of 4.94 million tree seedlings over 10 years. Management further reported that the XPENG P7+ was simultaneously launched across 36 countries, with its European launch at the 2026 Brussels Motor Show in January.
XPeng Inc. (NYSE:XPEV) further reported that it has expanded its global presence to 60 countries and regions as of December 31, 2025, with its overseas sales network encompassing 380 physical stores, representing a year-over-year growth of more than 150%. In addition, the company’s worldwide sales and service network has grown to a total of over 1,000 outlets.
XPeng Inc. (NYSE:XPEV) is involved in the design, manufacturing, development, and marketing of smart electric vehicles. The company’s offerings are environmentally friendly vehicles, namely an SUV (the G3) and a four-door sports sedan (the P7). It also offers a range of client services, including supercharging service, maintenance service, ride-hailing service, and vehicle leasing service.
