On June 3, 2025, the Council of Supply Chain Management Professionals (CSCMP) released its Annual State of Logistics Report. The report suggests that businesses continue to face a lot of uncertainty in both supply chains and the economy.
According to the report, Mexico overtook China to become the largest trading partner for the United States in 2024. Trade between the US and Mexico reached a record $840 billion, which represents a 6% increase year-over-year.
In 2024, the logistics industry returned to pre-pandemic patterns in some areas. However, business volumes remained flat and the industry faced rising operating costs.
The report highlights that there are multiple reasons why demand has not yet fully recovered. These include geopolitical conflicts around the world, climate change affecting shipping, high inflation and interest rates, shifting trade regulations, and weak demand outside of the US.
E-commerce continues to grow rapidly, with global online retail sales reaching almost $6.3 trillion. This growth is leading to more efficient last-mile delivery services and increased demand for air freight and agile warehousing.
Investing in technology has become a key part of the modern supply chain. Supply chain leaders are focusing on data analytics, artificial intelligence, robotics, and automation to enhance operations and stay competitive.
With this background in mind, let’s take a look at the 12 best logistics stocks to buy according to hedge funds.
A fleet of rented trucks parked alongside a warehouse, emphasizing the company’s logistics services.
Our Methodology
To compile our list of the 12 best logistics stocks to buy according to hedge funds, we looked for the biggest logistics companies. We reviewed our own rankings, financial media reports, ETFs, and various online resources to compile a list of the best logistics stocks. Next, we focused on the top 12 stocks most favored by institutional investors. Data for the hedge fund sentiment surrounding each stock was taken from Insider Monkey’s Q1 2025 database of 1,000 elite hedge funds. Finally, the 12 best logistics stocks to buy were ranked in ascending order based on the number of hedge funds holding stakes in them as of Q1 2025.
Why do we care about what hedge funds do? 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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
12 Best Logistics Stocks to Buy According to Hedge Funds
12. Expeditors International of Washington, Inc. (NYSE:EXPD)
Number of Hedge Fund Holders: 40
Expeditors International of Washington, Inc. (NYSE:EXPD) is one of the best logistics stocks to buy according to hedge funds. On July 11, BofA Securities downgraded Expeditors International of Washington, Inc. (NYSE:EXPD) from “Neutral” to “Underperform” but slightly raised the price target from $117 to $118.
This downgrade was driven by rapidly falling containership rates. At the same time, Expeditors International of Washington, Inc. (NYSE:EXPD) had climbed above BofA’s previous price target.
BofA pointed out that Expeditors International of Washington, Inc. (NYSE:EXPD) has gained 16% since early April.
The firm also updated its price-to-earnings (P/E) ratio assumption and moved to a 20x multiple for 2026 estimated earnings per share (EPS), down from the previous 21x multiple for 2025 EPS.
BofA estimates flat earnings growth for Expeditors International of Washington, Inc. (NYSE:EXPD) but projects about 5% EPS growth in 2026. The firm believes this will lead to muted share performance.
Expeditors International of Washington, Inc. (NYSE:EXPD) is a global logistics company that offers freight, customs brokerage, time-definite transportation, order management, warehousing and distribution, and customized logistics solutions.
11. J.B. Hunt Transport Services, Inc. (NASDAQ:JBHT)
Number of Hedge Fund Holders: 40
J.B. Hunt Transport Services, Inc. (NASDAQ:JBHT) is one of the best logistics stocks to buy according to hedge funds. On July 16, BMO Capital maintained an “Outperform” rating on J.B. Hunt Transport Services, Inc. (NASDAQ:JBHT) and kept the price target at $172.
The firm pointed to J.B. Hunt Transport Services, Inc.’s (NASDAQ:JBHT) recently announced $100 million cost savings plan as a key reason that reduces risk for the company’s future earnings.
BMO Capital’s analysis suggests that J.B. Hunt Transport Services, Inc. (NASDAQ:JBHT) is on track to see its earnings surpass $10 per share in the next mid-cycle.
Additionally, BMO noted that J.B. Hunt Transport Services, Inc. (NASDAQ:JBHT) set a new quarterly record for share repurchases in the second quarter of 2025, which was seen as evidence of “disciplined capital allocation.”
J.B. Hunt Transport Services, Inc. (NASDAQ:JBHT) is an American transportation and logistics company that specializes in freight shipping for customers of all sizes, including global supply chains and small businesses.
10. C.H. Robinson Worldwide, Inc. (NASDAQ:CHRW)
Number of Hedge Fund Holders: 40
C.H. Robinson Worldwide, Inc. (NASDAQ:CHRW) is one of the best logistics stocks to buy according to hedge funds. On July 17, Jefferies increased its price target for C.H. Robinson Worldwide, Inc. (NASDAQ:CHRW) from $95 to $100 and kept a “Hold” rating.
The research firm pointed out that C.H. Robinson Worldwide, Inc. (NASDAQ:CHRW) is trading at about 22 times earnings and 16 times EBITDA for 2025, which are 6% and 12% above the company’s historical averages, respectively.
According to Jefferies, this suggests that there is limited room for the stock price to rise from multiple expansion unless freight market fundamentals considerably exceed current market expectations.
This analysis was part of Jefferies’ broader assessment of the transportation and logistics sector. The firm noted that stock valuations for trucking and brokerage companies have bounced back from early-year lows, which reflects generally strong expectations for a recovery in the sector over the next year.
C.H. Robinson Worldwide, Inc. (NASDAQ:CHRW) is an American company that specializes in freight, logistics, and supply chain solutions. The company offers truckload, less than truckload, air freight, and ocean transportation.
9. GXO Logistics, Inc. (NYSE:GXO)
Number of Hedge Fund Holders: 42
GXO Logistics, Inc. (NYSE:GXO) is one of the best logistics stocks to buy according to hedge funds. On July 15, GXO Logistics, Inc. (NYSE:GXO) announced that it has signed a multi-year agreement with Sky Italia for logistics services and value-added activities in Italy.
Under this agreement, GXO Logistics, Inc. (NYSE:GXO) will manage Sky’s supply chain from its warehouse in Colleferro, Italy.
The Colleferro warehouse is 30,000 square meters in total size. This includes 7,000 square meters dedicated to storing over 1 million Sky products. As part of the agreement, GXO Logistics, Inc. (NYSE:GXO) will store Sky’s Business Core products like decoders and routers, the Glass line Smart TVs, and merchandising related to the Sky brand and TV series.
GXO Logistics, Inc. (NYSE:GXO) has been operating the Colleferro warehouse since 2010. The facility is a multi-user site that provides a scalable solution to support the growth of Sky’s business during busy peak periods. Additionally, the warehouse offers high levels of security to protect high-value products.
In addition to storage and logistics, GXO Logistics, Inc. (NYSE:GXO) will manage value-added activities such as supply chain management and quality control checks of Sky hardware and software.
GXO Logistics, Inc. (NYSE:GXO) is an American multinational contract logistics company that serves blue-chip companies with its supply chain and e-commerce solutions.
8. XPO, Inc. (NYSE:XPO)
Number of Hedge Fund Holders: 43
XPO, Inc. (NYSE:XPO) is one of the best logistics stocks to buy according to hedge funds. On July 15, Benchmark increased its price target for XPO, Inc. (NYSE:XPO) from $130 to $140 while keeping a “Buy” rating.
Benchmark believes that XPO, Inc. (NYSE:XPO) is on track to achieve a 250-300 basis point sequential improvement in its less-than-truckload (LTL) operating ratio for Q2 2025.
However, the research firm made small downward changes to its estimates for XPO, Inc.’s (NYSE:XPO) results in the second quarter and beyond. This was attributed to tougher June comparisons, lower revenue from fuel surcharges, and weakness in the industrial economy.
Benchmark pointed out that XPO, Inc.’s (NYSE:XPO) focus on pricing over volume is a key factor driving operating ratio improvement.
The research firm is confident about the company’s long-term growth. Benchmark noted that XPO, Inc.’s (NYSE:XPO) terminal expansion, more capacity, and increased insourced line-haul miles will allow the company to see operating leverage when demand recovers.
XPO, Inc. (NYSE: XPO) is an American transportation and logistics company that specializes in asset-based less-than-truckload (LTL) freight transportation.
7. Canadian National Railway Company (NYSE:CNI)
Number of Hedge Fund Holders: 45
Canadian National Railway Company (NYSE:CNI) is one of the best logistics stocks to buy according to hedge funds. On July 2, Canadian National Railway Company (NYSE:CNI) shared its plan to invest about $110 million in Wisconsin. This investment is part of the company’s 2025 capital investment program.
According to the report by Canadian National Railway Company (NYSE:CNI), this investment will be used for track maintenance and strategic infrastructure initiatives in the US state of Wisconsin. This includes investments in infrastructure, technology, capacity, and network improvements.
Through these investments, Canadian National Railway Company (NYSE:CNI) aims to improve the safe movement of goods and support long-term sustainable growth in Chicago and across the company’s network.
This will help the company provide improved service to its customers and supply chain partners while also supporting economic growth across communities where it operates.
Canadian National Railway Company (NYSE:CNI) is a major transportation company in North America. It is primarily focused on rail freight services and transports natural resources, manufactured products, and finished goods throughout North America.
6. Norfolk Southern Corporation (NYSE:NSC)
Number of Hedge Fund Holders: 49
Norfolk Southern Corporation (NYSE:NSC) is one of the best logistics stocks to buy according to hedge funds. On July 21, Bernstein SocGen Group increased its price target for Norfolk Southern Corporation (NYSE:NSC) from $295 to $305 while keeping an “Outperform” rating.
Bernstein analyst David Vernon sees possible value creation in a potential merger between Norfolk Southern Corporation (NYSE:NSC) and Union Pacific (UNP).
Vernon believes that both companies could benefit from this “more friendly deal than a typical takeout.”
According to the analyst, shareholders of Norfolk Southern Corporation (NYSE:NSC) and Union Pacific (UNP) could unlock significant value through this merger that otherwise would be difficult to achieve.
The talks are in early stages and although Bernstein has not fully included an approved deal in its current analysis, the updated price target reflects movement in that direction.
Norfolk Southern Corporation (NYSE:NSC) is an American freight railway company that operates a freight transportation network across 22 states and Washington, DC.
5. United Parcel Service, Inc. (NYSE:UPS)
Number of Hedge Fund Holders: 57
United Parcel Service, Inc. (NYSE:UPS) is one of the best logistics stocks to buy according to hedge funds. On July 2, UBS reduced its price target for United Parcel Service, Inc. (NYSE:UPS) from $128 to $124 and reiterated a “Buy” rating.
This decision reflects the investment firm’s expectation of increased pressure on United Parcel Service, Inc.’s (NYSE:UPS) International segment earnings. One of the reasons for this is that the de minimis exemption, a special tax exemption, will no longer apply to imports from China and Hong Kong.
UBS now projects that United Parcel Service, Inc.’s (NYSE:UPS) International earnings before interest and taxes (EBIT) could drop by over $200 million per quarter, from the second quarter to the fourth quarter of 2025, compared to the previous year.
The investment bank also lowered its forecast for United Parcel Service, Inc.’s (NYSE:UPS) Q2 2025 earnings per share (EPS) from $1.60 to $1.54. For the full year 2025, UBS cut the EPS forecast from $7.15 to $6.93.
United Parcel Service, Inc. (NYSE:UPS) is an American multinational company that specializes in shipping and receiving, logistics, and supply chain management.
4. FedEx Corporation (NYSE:FDX)
Number of Hedge Fund Holders: 62
FedEx Corporation (NYSE:FDX) is one of the best logistics stocks to buy according to hedge funds. On June 25, UBS reduced its price target for FedEx Corporation (NYSE:FDX) from $311 to $297 while keeping a “Buy” rating.
This decision came after the company shared results for its fourth quarter of fiscal 2025. FedEx Corporation (NYSE:FDX) reported adjusted earnings per share of $6.07 for the quarter, which beat market expectations.
The company’s operating income in both its Federal Express and Freight segments came in stronger than expected. This was excluding a $33 million gain on the sale of a facility, which added $0.09 per share to the Freight division’s earnings before interest and taxes.
For the first quarter of fiscal 2026, FedEx Corporation (NYSE:FDX) provided guidance with a midpoint of $3.70 per share. This is about 9% below consensus estimates. The company also decided not to provide guidance for the full year, citing uncertainty in the global economy and trade.
UBS analysts noted that FedEx Corporation’s (NYSE:FDX) stock is likely to see a “modestly negative response” to the earnings report and guidance, especially because of the company’s cautious stance and its choice not to provide a more complete outlook for its fiscal year 2026.
FedEx Corporation (NYSE:FDX) is an American company that specializes in transportation, e-commerce, and logistics. The company serves over 220 countries and territories.
3. Canadian Pacific Kansas City Limited (NYSE:CP)
Number of Hedge Fund Holders: 65
Canadian Pacific Kansas City Limited (NYSE:CP) is one of the best logistics stocks to buy according to hedge funds. On July 21, Canadian Pacific Kansas City Limited (NYSE:CP) announced with CSX Corporation a new rail transportation routing option for customers across the southern US with the Southeast Mexico Express (SMX).
The SMX is a new east-west Class 1 corridor that connects shippers in Mexico, Texas and the southeastern US.
According to the report by Canadian Pacific Kansas City Limited (NYSE:CP) , this new rail transportation route is already providing automotive, intermodal, and carload customers with faster transit times, more capacity, and environmentally friendly rail solutions.
The SMX represents an important improvement in cross-border logistics and creates faster freight solutions.
Canadian Pacific Kansas City Limited (NYSE:CP) is a Canadian railway holding company that offers a range of freight transportation services, logistics solutions, and supply chain expertise.
2. CSX Corporation (NASDAQ:CSX)
Number of Hedge Fund Holders: 68
CSX Corporation (NASDAQ:CSX) is one of the best logistics stocks to buy according to hedge funds. On July 17, BofA Securities upgraded CSX Corporation (NASDAQ:CSX) from “Neutral” to “Buy” and increased its price target from $34 to $42.
According to BofA Securities, this decision reflects increased chances for mergers and acquisitions among US railroad companies. The research firm believes this could drive higher valuations for companies like CSX Corporation (NASDAQ:CSX).
The increased target price of $42 is based on a valuation of 21.5 times BofA’s earnings estimate for CSX Corporation (NASDAQ:CSX) in 2026, up from the previous multiple of 20.5 times for the firm’s 2025 forecast.
BofA Securities also pointed out that CSX Corporation (NASDAQ:CSX) has made internal service improvements, which was another factor warranting a valuation reassessment of the company.
CSX Corporation (NASDAQ:CSX) is one of the largest suppliers of rail-based freight transportation in North America. The company offers traditional rail service and the transport of intermodal containers and trailers.
1. Union Pacific Corporation (NYSE:UNP)
Number of Hedge Fund Holders: 85
Union Pacific Corporation (NYSE:UNP) is one of the best logistics stocks to buy according to hedge funds. On July 16, Union Pacific Corporation (NYSE:UNP) announced a 3% increase in its dividend for the third quarter of 2025.
The company’s Board of Directors voted to raise the quarterly dividend on the common shares to $1.38 per share.
This increased dividend is scheduled to be paid on September 30, 2025, to shareholders of record August 29, 2025.
Union Pacific Corporation (NYSE:UNP) has been paying dividends to its shareholders every year for the past 126 years. This latest increase marks the 19th year in a row that the company has raised its annual dividends per share.
According to Union Pacific Corporation’s (NYSE:UNP) management, this decision shows the company’s ongoing commitment to return strong and growing cash to its shareholders.
Union Pacific Corporation (NYSE:UNP) is an American railroad holding company that connects 23 Western US states and provides efficient railroad transportation, freight shipping, logistics, and rail safety services.
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