5 Cheap Transportation Stocks To Buy

4. Union Pacific Corporation (NYSE:UNP)

Number of Hedge Fund Holders: 85

Trailing P/E Ratio: 18.56

Union Pacific Corporation (NYSE:UNP) provides transportation services for a wide range of goods, including grains, fertilizers, food products, coal, petroleum, industrial chemicals, forest products, metals, automobiles, and intermodal containers. It is one of the top cheap transportation stocks to watch. On April 20, Union Pacific Corporation (NYSE:UNP) reported a GAAP EPS of $2.67, beating market consensus by $0.09. The revenue of $6.06 billion also outperformed Wall Street estimates by $19.81 million. 

According to Insider Monkey’s first quarter data, 85 hedge funds were bullish on Union Pacific Corporation (NYSE:UNP), compared to 83 funds in the prior quarter. Eric W. Mandelblatt’s Soroban Capital Partners is the leading position holder in the company, with 8.26 million shares worth $1.6 billion. 

Matrix Asset Advisors made the following comment about Union Pacific Corporation (NYSE:UNP) in its Q1 2023 investor letter:

“During the quarter we added a new position in Union Pacific Corporation (NYSE:UNP). Union Pacific (UNP) is the 2nd largest railroad network in the United States just behind Burlington Northern Santa Fe. The firm operates in the Western, Midwestern, and Southern portions of the United States. 90% of UNP sales come from the US and 10% from Mexico. Over the past decade, railroads gained market share from the trucking industry because it costs 10-40% less to ship via rails than trucks. The company has a long history of consistent operating growth and profitability. The shares fell from a high of $278 in May of 2022 after the firm experienced operating challenges due to a slower macro environment and higher expenses.”