5 Best Transportation Stocks To Buy Heading Into 2023

2. Union Pacific Corporation (NYSE:UNP)

Number of Hedge Fund Holders: 74

Union Pacific Corporation (NYSE:UNP) is a Nebraska-based company that operates in the railroad business in the United States. The company offers transportation for grain products, fertilizers, refrigerated products, coal and renewables, ethanol, and petroleum. Union Pacific Corporation (NYSE:UNP) is one of the premier transportation stocks to invest in. 

On November 28, Deutsche Bank analyst Amit Mehrotra raised the price target on Union Pacific Corporation (NYSE:UNP) to $238 from $216 and reiterated a Buy rating on the shares, citing a positive outlook for transportation equities in 2023.

Among the hedge funds tracked by Insider Monkey, 74 funds reported owning stakes worth $6.4 billion in Union Pacific Corporation (NYSE:UNP) at the end of Q3 2022, compared to 65 funds in the prior quarter worth $6.3 billion. Ken Fisher’s Fisher Asset Management is a prominent stakeholder of the company, with 5.3 million shares worth over $1 billion. 

Here is what Diamond Hill Capital Management specifically said about Union Pacific Corporation (NYSE:UNP) in its Q2 2022 investor letter:

“Union Pacific Corporation (NYSE:UNP) is a large railroad company that carries freight across the western US and between Canada and Mexico. It transports a variety of industrial goods, raw materials and containerized freight between major US ports, industrial hubs and international gateways. The goods that Union Pacific and other railroads transport are fundamental inputs in the economy and are resilient to long-term trends in the business cycle. We believe Union Pacific offers a compelling investment opportunity as its substantial infrastructure investments, relative cost advantages, limited leverage and the essential nature of the products it delivers provides the company with what we believe is one of the widest moats in the transportation sector. We also like that Union Pacific has a shareholder-oriented management team that is focused on growing earnings while returning capital to shareholders.”