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.
9. Group 1 Automotive, Inc. (NYSE:GPI)
Analyst Upside: 43.15%
Number of Hedge Fund Holders: 40
Group 1 Automotive, Inc. (NYSE:GPI) is one of the best transportation stocks to buy according to Wall Street analysts. On February 20, Group 1 Automotive, Inc. (NYSE:GPI) was upgraded to Overweight from Neutral by JPMorgan, with the firm keeping the price target the same at $370 and telling investors that it believes the company’s estimates “are now closer to reset.” It added that the stock’s de-rating has been more severe than warranted given Group 1’s “best-in-class execution”.
In a separate development, Group 1 Automotive, Inc. (NYSE:GPI) announced on February 11 that its board of directors approved an increase in the 2026 annual dividend rate to $2.20 per share, representing an increase of 10%, or $0.20, from the 2025 annual dividend rate of $2.00 per share. Management stated that consistent with this increase, a $0.55 dividend per share will be payable on March 16, 2026, to stockholders of record as of March 2, 2026. The same day as this update, JPMorgan maintained a Hold rating on Group 1 Automotive, Inc. (NYSE:GPI) with a price target of $370.
Group 1 Automotive, Inc. (NYSE:GPI) operates in the automotive retailing industry and sells used and new cars and light trucks. It also sells vehicle parts, provides automotive maintenance and repair services, and sells service contracts. The company’s operations are divided into the United States and the United Kingdom geographical segments.
8. Mobileye Global Inc. (NASDAQ:MBLY)
Analyst Upside: 54.70%
Number of Hedge Fund Holders: 43
Mobileye Global Inc. (NASDAQ:MBLY) is one of the best transportation stocks to buy according to Wall Street analysts. On January 27, Mobileye Global Inc. (NASDAQ:MBLY) was downgraded to Neutral from Buy by Arete, with the firm setting a $15.70 price target.
Mobileye Global Inc. (NASDAQ:MBLY) also received several rating updates from analysts following its fiscal Q4 and full-year 2025 earnings release on January 22. Raymond James cut the price target on the stock to $16 from $19 on January 23, maintaining an Outperform rating on the shares after the Q4 results. The firm told investors in a research note that while the fiscal year 2026 guidance reaffirmed it as a transition year, it still sees room for upside in late 2026. Raymond James views risk/reward as favorable, given the company’s meaningful earnings leverage from incremental revenue.
Mobileye Global Inc. (NASDAQ:MBLY) also received a rating update from RBC Capital the same day, with the firm lowering the price target on the stock to $13 from $14 while maintaining a Sector Perform rating on the shares. The firm stated that the company’s fiscal year 2026 EBIT guidance came in well below consensus, attributed to R&D expenses associated with the Mentee Robotics acquisition. It further stated that while it remains constructive on Mobileye robotaxi and humanoid platforms, it also sees near-term headwinds from OEM insourcing on advanced autonomy.
Mobileye Global Inc. (NASDAQ:MBLY) develops and deploys driver assistance systems and autonomous driving technologies and solutions. The company’s operations are divided into the Mobileye and Other segments.
7. American Airlines Group Inc. (NASDAQ:AAL)
Analyst Upside: 27.48%
Number of Hedge Fund Holders: 43
American Airlines Group Inc. (NASDAQ:AAL) is one of the best transportation stocks to buy according to Wall Street analysts. American Airlines Group Inc. (NASDAQ:AAL) has received several rating updates from analysts following the release of its fiscal Q4 and full year 2025 financial results on January 27. It announced record Q4 revenue of $14.0 billion, despite a negative impact of $325 million from the government shutdown. Management reported sequential improvement in year-over-year passenger unit revenue performance compared to Q3 in each of the international entities, and added that the company reduced its total debt by $2.1 billion in 2025.
On February 3, Citi added an “upside 90-day catalyst watch” on American Airlines Group Inc. (NASDAQ:AAL) and reiterated a Buy rating on the stock. The firm set a $21 price target, telling investors that it is “tactically bullish” on the airline sector after the fiscal Q4 reports.
In a separate development, TD Cowen cut the price target on American Airlines Group Inc. (NASDAQ:AAL) to $17 from $19 on January 30. The firm maintained a Buy rating on the shares and told investors that it updated its model with Q1 EPS standing near the low end of the range, given complications surrounding Winter Storm Fern.
American Airlines Group Inc. (NASDAQ:AAL) operates a network carrier through its principal wholly owned mainline operating subsidiary, American, offering air transportation services for cargo and passengers. The company’s operations are divided into the following geographical segments: Domestic, Latin America, Atlantic, and Pacific.
6. Alaska Air Group, Inc. (NYSE:ALK)
Analyst Upside: 33.13%
Number of Hedge Fund Holders: 44
Alaska Air Group, Inc. (NYSE:ALK) is one of the best transportation stocks to buy according to Wall Street analysts. Alaska Air Group, Inc. (NYSE:ALK) released its fiscal Q4 and full year 2025 results on January 22, with reported EPS of $0.18 and adjusted earnings per share of $0.43, ahead of expectations and previous guidance range. The company generated $1.2 billion in operating cash flow for the full year. In addition, Alaska Air Group, Inc. (NYSE:ALK) achieved a single operating certificate for Hawaiian Airlines and Alaska Airlines.
Following the earnings release, the company received several rating updates from analysts. On January 30, TD Cowen cut the price target on Alaska Air Group, Inc. (NYSE:ALK) to $63 from $64, reaffirming a Buy rating on the shares and telling investors that it updated its estimates to take into account guidance for Q1/FY26.
In addition to TD Cowen, Morgan Stanley also maintained a bullish stance on Alaska Air Group, Inc. (NYSE:ALK) on January 23, maintaining a Buy rating and stating that the company finished the year with earnings meaningfully above expectations in fiscal Q4. These positive trends were supported by a more favorable fuel expense, reduced tax rate, and better cost control.
The firm also stated that synergies are tracking ahead of plan, with early 2026 booking trends showing particular strength. Morgan Stanley sees a credible path to earnings of $6.50 per share without the need for additional macro or industry tailwinds, adding that further upside is possible through continual improvement in the U.S. domestic demand.
Alaska Air Group, Inc. (NYSE:ALK) provides air transportation services and operates through the following segments: Alaska Airlines, Hawaiian Airlines, and Regional.
5. Lithia Motors, Inc. (NYSE:LAD)
Analyst Upside: 36.05%
Number of Hedge Fund Holders: 45
Lithia Motors, Inc. (NYSE:LAD) is one of the best transportation stocks to buy according to Wall Street analysts. On February 20, Lithia Motors, Inc. (NYSE:LAD) was downgraded to Neutral from Overweight by JPMorgan, with the firm bringing the price target on the stock down to $335 from $350. The firm told investors that the company’s visibility on execution remains a challenge, and that while Lithia Motors, Inc. (NYSE:LAD) exhibited strong same-store performance in fiscal Q4, it was more than offset by weaker-than-expected cost control. JPMorgan added that the company’s balance sheet leverage has now moved towards the higher-end of the target range.
Barclays also adjusted the price target on Lithia Motors, Inc. (NYSE:LAD) to $380 from $390 on February 17, maintaining an Overweight rating on the shares and telling investors that while the company’s fiscal Q4 results missed estimates, it still anticipates solid earnings growth in 2026.
Lithia Motors, Inc. (NYSE:LAD) reported its fiscal Q4 and full year 2025 results on February 11, reporting record full year revenues of $37.63 billion, up 4.0%, and record fourth quarter revenue of $9.20 billion. Full year diluted earnings per share rose 9.7%, while adjusted diluted earnings per share increased 15.7%.
Lithia Motors, Inc. (NYSE:LAD) operates as a global automotive retailer that offers a wide range of products and services throughout the vehicle ownership lifecycle. The company retails new and used vehicles and also offers other services, including captive finance solutions, comprehensive fleet management services, and other synergistic adjacencies. Its operations are divided into the Vehicle Operations and Financing Operations segments.
4. Lyft, Inc. (NASDAQ:LYFT)
Analyst Upside: 36.20%
Number of Hedge Fund Holders: 51
Lyft, Inc. (NASDAQ:LYFT) is one of the best transportation stocks to buy according to Wall Street analysts. JPMorgan reaffirmed a Hold rating on Lyft, Inc. (NASDAQ:LYFT) on February 13, setting a price target of $19. Lyft, Inc. (NASDAQ:LYFT) also received a rating update from Susquehanna on February 12, with the firm lowering the price target on the stock to $15 from $24 while maintaining a Neutral rating on the shares. The firm told investors that it believes the company reported a noisy fiscal Q4 and outlook, and that the risk/reward is balanced at current levels.
The same day, Mizuho also cut the price target on Lyft, Inc. (NASDAQ:LYFT) to $16 from $27 and reiterated a Neutral rating on the shares. According to the firm, the shares are “likely to struggle to work near-term”. It added that with the California-driven acceleration slipping to the second half of the year, there is risk that the autonomous vehicle threat “subsumes the acceleration bull case” for Lyft, Inc. (NASDAQ:LYFT).
Lyft, Inc. (NASDAQ:LYFT) announced record fiscal Q5 and full-year 2025 results on February 10, with gross bookings in fiscal Q4 reaching $5.1 billion, up 19% year-over-year. Revenue for the quarter was $1.6 billion, up 3% year over year, which includes a $168 million impact from certain legal, tax, and regulatory reserve changes and settlements. Management reported that revenue would have been $1.8 billion without this item. Revenue for the full year 2025 was $6.3 billion, up 9% year over year, while gross bookings reached $18.5 billion, up 15% year over year.
Lyft, Inc. (NASDAQ:LYFT) provides and manages an online social ride-sharing community platform that offers users access to a nexus of shared rides, scooters, and bikes. The company also offers information about neighboring public transit routes and a view of transportation options when planning a trip through Lyft Rentals.
3. Expedia Group, Inc. (NASDAQ:EXPE)
Analyst Upside: 32.69%
Number of Hedge Fund Holders: 63
Expedia Group, Inc. (NASDAQ:EXPE) is one of the best transportation stocks to buy according to Wall Street analysts. DA Davidson cut the price target on Expedia Group, Inc. (NASDAQ:EXPE) to $260 from $294 on February 17, maintaining a Neutral rating on the shares. The firm told investors in a research note that while Expedia Group, Inc. (NASDAQ:EXPE) delivered “solid” Q4 results driven by broad-based strength across brands and geographies, the initial 2026 guide calls for 100-125 bps of further EBITDA margin expansion. This, according to DA Davidson, will disappoint some investors.
The same day, Susquehanna also cut the price target on Expedia Group, Inc. (NASDAQ:EXPE) to $240 from $265 and maintained a Neutral rating on the shares, telling investors that the company delivered generally solid results and outlook. The firm remains constructive on the long-term company’s online hotels and alternative accommodations penetration story, but added that they stay on the sidelines as they view the risk/reward as balanced at current levels.
Expedia Group, Inc. (NASDAQ:EXPE) also received a rating update from BMO Capital on February 17, with the firm raising the price target on the stock to $255 from $250 while maintaining a Market Perform rating on the shares.
Expedia Group, Inc. (NASDAQ:EXPE) is an online travel company that provides travel products and services to leisure and corporate travelers. The company’s operations are divided into the B2C, B2B, and Trivago segments.
2. Booking Holdings Inc. (NASDAQ:BKNG)
Analyst Upside: 45.15%
Number of Hedge Fund Holders: 95
Booking Holdings Inc. (NASDAQ:BKNG) is one of the best transportation stocks to buy according to Wall Street analysts. Susquehanna lifted the price target on Booking Holdings Inc. (NASDAQ:BKNG) to $6,500 from $5,000 on February 20, maintaining a Positive rating on the shares and telling investors that the company posted a generally solid fiscal Q4 and plans to continue to invest in the business.
Although the potential for near-term choppiness exists, Susquehanna continues to remain impressed by the company’s execution and views Booking Holdings Inc. (NASDAQ:BKNG) as an attractive name to own in the online travel space.
In another development, JPMorgan cut the price target on Booking Holdings Inc. (NASDAQ:BKNG) to $5,600 from $6,250 on February 20, keeping an Overweight rating on the shares. According to the firm, the company delivered strong fiscal Q4 results and offered an “encouraging” outlook. It added that the guidance could have upside, as evidenced by Booking Holdings Inc.’s (NASDAQ:BKNG) multi-year execution and due to the transformation savings.
Booking Holdings Inc. (NASDAQ:BKNG) also received a rating update from TD Cowen on February 19, with the firm lowering the price target on the stock to $6,000 from $6,850 while maintaining a Buy rating on the shares.
Booking Holdings Inc. (NASDAQ:BKNG) provides online travel and related solutions, including accommodation reservations, including hotels, hostels, apartments, vacation rentals, and other properties. The company offers its services through the following brands: Booking.com, Priceline, Agoda, KAYAK, and OpenTable.
1. Uber Technologies, Inc. (NYSE:UBER)
Analyst Upside: 42.84%
Number of Hedge Fund Holders: 143
Uber Technologies, Inc. (NYSE:UBER) is one of the best transportation stocks to buy according to Wall Street analysts. BTIG reaffirmed a bullish outlook on Uber Technologies, Inc. (NYSE:UBER) on February 11, assigning a Buy rating to the stock with a $100 price target. The rating update came after Uber Technologies, Inc. (NYSE:UBER) and Baidu, Inc. released an announcement on February 10, in partnership with Dubai’s Roads and Transport Authority (RTA), regarding the next phase of their global partnership and bringing the Apollo Go autonomous ride-hailing service to the Uber platform in Dubai. The collaboration directly aligns with Dubai’s ambitious goal of having 25% of all transportation trips be autonomous by 2030.
The fully autonomous vehicles are anticipated to launch in the coming month and will be available through the Uber app across select locations within the Jumeirah area. Management further reported that the deployment will expand based on operational learnings and regulatory approvals across the city.
In a separate development, Citi reaffirmed a Buy rating on Uber Technologies, Inc. (NYSE:UBER) on February 6 and adjusted the price target to $110 from $120. Roth Capital also adjusted the price target on Uber Technologies, Inc. (NYSE:UBER) to $105 from $110 on February 5 and maintained a Buy rating on the shares. The firm stated that the company delivered a beat on earnings, and its underlying metrics and segment results also came in above expectations.
Uber Technologies, Inc. (NYSE:UBER) operates as a technology platform that offers ride services and merchant delivery service providers for food, groceries, meal preparation, and other delivery services. The company’s operations are divided into Delivery, Mobility, and Freight. It is pioneering the introduction of autonomous vehicles to move people and goods more reliably, efficiently, and affordably.
While we acknowledge the potential of UBER to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than UBER and that has 100x upside potential, check out our report about this cheapest AI stock.
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