10 Transportation as a Service Stocks to Buy

Published May 7, 2021 at 10:59 am EDT Updated August 19, 2026 at 4:55 am EDT

In this article, we will take a look at the 10 transportation as a service stocks to buy.

The transportation industry has been of vital importance to the global economy for the past several decades. The Bureau of Transportation Statistics in the United States claims that the demand for transport in 2019 stood at $9 trillion, comprising nearly 9% of the Gross Domestic Product (GDP). Despite huge challenges like trade wars and manufacturing declines, there were signs for further growth of the industry moving forward. However, the COVID-19 pandemic slowed things down in 2020 as travel was curtailed and recession fears realized.

The vaccine rollout over the past few months has enabled a return to normal in a few countries and the transport sector looks set to bounce back. United Parcel Service, Inc. (NYSE: UPS), a package transportation service, easily beat market estimates for profit and revenue in the fourth quarter of 2020. The firm reported a profit of $2.66 per share in the last three months of 2020, beating market expectations by $0.52. United Parcel Service, Inc. (NYSE: UPS) also posted a revenue of $24.9 billion for the same period, beating predictions by $2 billion.

The past few years in the transport sector have also been characterized by technological disruption. The pandemic accelerated advances in some segments of the industry but slowed progress in others. For example, Uber Technologies, Inc. (NYSE: UBER), a ride-hailing service, reported losses of $1.8 billion in the second quarter of 2020, largely as bookings plummeted by nearly three quarters. However, earlier this month, Uber Technologies, Inc. (NYSE: UBER) posted a 24% increase in bookings for the first quarter of 2021, looking set for a comeback.

FedEx Corporation (NYSE: FDX), a delivery service, actually saw business boom during the pandemic. However, FedEx Corporation (NYSE: FDX) was unable to capitalize fully on the opportunity the lockdown provided due to the limits on air cargo capacities and the disruption to global supply chains. With the gradual reopening of the economy this year, FedEx shares have tripled in value from the pandemic lows, driven by record revenue gains. The ground and freight sections of the company are also operating on good margins as business orders increase.

In addition to the traditional power players, new entrants like Tesla, Inc. (NASDAQ: TSLA) also have tremendous growth prospects in the transport industry. Tesla, Inc. (NASDAQ: TSLA) is the largest electric vehicle manufacturer in the world and plans to transform the future of transport by the end of this decade by expanding product range from sports and passenger cars to pick-up trucks, heavy-duty trucks and public transport. Since the transport industry is a major source of carbon emissions, governments around the world are devising policies to encourage the adoption of EVs. Tesla, Inc., owned by billionaire Elon Musk, has a lot of room to run in this regard.

Even though there are several reasons to be optimistic about the future outlook for the transport industry, there are lingering uncertainties that might play a small but crucial part in the final earnings for the transport sector for this fiscal year. A new administration in the White House has already pledged to increase spending on roads and airports, directly benefiting transport owners. But civil unrest, COVID-19 third waves, and the digitization of the economy are still potential roadblocks for the growth of transport stocks this year.

Digitization has affected several other sectors of the economy as well. The entire hedge fund industry is feeling the reverberations of the changing financial landscape. Its reputation has been tarnished in the last decade, during which its hedged returns couldn’t keep up with the unhedged returns of the market indices. On the other hand, Insider Monkey’s research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 124 percentage points since March 2017. Between March 2017 and February 26th 2021 our monthly newsletter’s stock picks returned 197.2%, vs. 72.4% for the SPY. Our stock picks outperformed the market by more than 124 percentage points (see the details here). We were also able to identify in advance a select group of hedge fund holdings that significantly underperformed the market. We have been tracking and sharing the list of these stocks since February 2017 and they lost 13% through November 16th. That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to. You can subscribe to our free newsletter on our homepage to receive our stories in your inbox.

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With this context in mind, here is our list of 10 transportation as a service stocks to buy.

Best Transportation as a Service Stocks to Buy

10. Matson, Inc. (NYSE: MATX)

Number of Hedge Fund Holders: 14

Matson, Inc. (NYSE: MATX) is a Honolulu-based transportation company that primarily deals in ocean shipping services. It was founded in 1882 and is placed tenth on our list of 10 transportation as a service stocks to buy. The company has operations in the Pacific, Hawaii, Alaska, Guam, Micronesia, the South Pacific, China and Japan. Matson stock has returned almost 145% to investors over the past twelve months. The company has a market cap of more than $2.8 billion and posted more than $2.4 billion in annual revenue in 2020.

On April 27, Matson, Inc. reported $711 million in revenue for the first quarter of 2021, up close to 39% compared to the same period last year, and beating market estimates by over $36 million.

At the end of the fourth quarter of 2020, 14 hedge funds in the database of Insider Monkey held stakes worth $13 million in the firm, up from 9 the preceding quarter worth $12 million.

9. Echo Global Logistics, Inc. (NASDAQ: ECHO)

Number of Hedge Fund Holders: 15

Echo Global Logistics, Inc. (NASDAQ: ECHO) is a Chicago-based company that provides technology-based transportation and supply management services. It was founded in 2005 and is ranked ninth on our list of 10 transportation as a service stocks to buy. It serves many industries, including manufacturing, construction, food and beverage, consumer products, and retail. Echo Global stock has returned more than 117% to investors over the past twelve months. The share price of the firm has been soaring in the past weeks as economic activities gather steam.

On April 28, Echo Global Logistics, Inc. posted more than $800 million in revenue for the first quarter of 2021, beating market estimates by more than $71 million. The first quarter revenue was up more than 45% compared to the same period last year.

Out of the hedge funds being tracked by Insider Monkey, New York-based investment firm Renaissance Technologies is a leading shareholder in the firm with 332,000 shares worth more than $8 million.

8. Expeditors International of Washington, Inc. (NASDAQ: EXPD)

Number of Hedge Fund Holders: 25

Expeditors International of Washington, Inc. (NASDAQ: EXPD) is a Washington-based logistics and freight forwarding company that was founded in 1979. It is ranked eighth on our list of 10 transportation as a service stocks to buy. The company has operations in the Americas, North and South Asia, Europe, and Africa. Expeditors stock has returned more than 52% to investors over the last twelve months through the company’s airfreight, ocean freight, intra-continental ground transportation, and warehousing services.

On May 4, Expeditors International of Washington, Inc. reported more than $3.36 billion in quarterly revenue for the first three months of 2021. The number beat market estimates by close to $640 million and was up more than 76% compared to the same period last year.

At the end of the fourth quarter of 2020, 25 hedge funds in the database of Insider Monkey held stakes worth $477 million in the firm, down from 31 in the preceding quarter worth $528 million.

7. Virgin Galactic Holdings, Inc. (NYSE: SPCE)

Number of Hedge Fund Holders: 23

Virgin Galactic Holdings, Inc. (NYSE: SPCE) is a California-based spaceflight company founded in 2004. It is placed seventh on our list of 10 transportation as a service stocks to buy. The firm is developing spacecraft to market flights for tourists. The company is backed by billionaire Richard Branson and went public in 2019 and fetched a market valuation of $2 billion. It has increased in value since then and now has a market cap of close to $5 billion. The company posted close to $4 million in revenue in 2019.

On May 4, Virgin Galactic Holdings, Inc. share price rose by over 4% as rival Blue Origin, owned by billionaire Jeff Bezos, announced that it would be auctioning seats for the first space tourism flight in the world. SPCE gained because Blue Origin’s ticket price is much higher than Virgin’s.

Like Uber Technologies, Inc., United Parcel Service, Inc., Tesla, Inc. and FedEx Corporation, SPCE is one of the best stocks to buy for long-term gains given the company’s ambitious plans.

Out of the hedge funds being tracked by Insider Monkey, Chicago-based investment firm Citadel Investment Group is a leading shareholder in the firm with 2.7 million shares worth more than $65 million.

6. GATX Corporation (NYSE: GATX)

Number of Hedge Fund Holders: 12

GATX Corporation (NYSE: GATX) is a Chicago-based railcar leasing company. It was founded in 1898 and is ranked sixth on our list of 10 transportation as a service stocks to buy. GATX stock has returned more than 69% to investors over the past twelve months. The company has a market cap of more than $3.5 billion and posted more than $1.2 billion in annual revenue in 2020 despite the pandemic affecting operations. The firm also has stakes in the aircraft spare engine leases in partnership with Rolls Royce.

On April 28, GATX Corporation commented on the increase in steel prices and warned that the rising inflation was resulting in an increase in the cost of a car across the board. The firm also posted quarterly results for the first three months of 2021 earlier in April, reporting net income of more than $36 million.

At the end of the fourth quarter of 2020, 12 hedge funds in the database of Insider Monkey held stakes worth $177 million in the firm, up from 10 in the previous quarter worth $144 million.

5. United Parcel Service, Inc. (NYSE: UPS)

Number of Hedge Fund Holders: 48

United Parcel Service, Inc. is a Washington-based company in the package delivery and supply chain management business. It was founded in 1907 and is ranked fifth on our list of 10 transportation as a service stocks to buy. The company offers services in more than 200 countries and operates more than 127,000 package delivery vehicles. It has a fleet of aircraft and owns more than 58,000 containers for transportation of goods. UPS stock has returned more than 131% to investors over the past twelve months.

On May 3, United Parcel Service, Inc. was given an Outperform rating by investment advisory Wolfe Research, an upgrade from Peer Perform, with a price target of $239. UPS stock has been affected in recent days as news of the divorce of shareholders Bill and Melina Gates leads to uncertainty about the couple’s business affairs.

Out of the hedge funds being tracked by Insider Monkey, Washington-based Bill & Melinda Gates Foundation Trust is a leading shareholder in the firm with 4.5 million shares worth more than $762 million.

Saturna Capital Corporation, in its Q4 2020 investor letter, mentioned United Parcel Service, Inc. (NYSE: UPS). Here is what Saturna Capital Corporation has to say about United Parcel Service, Inc. in its letter:

“UPS is a new holding in the Fund, and we are excited about the opportunity for new management to improve operating metrics after several years of inconsistent performance.”

4. Union Pacific Corporation (NYSE: UNP)

Number of Hedge Fund Holders: 68

Union Pacific Corporation (NYSE: UNP) is a Nebraska-based railroad company founded in 1862. It is ranked fourth on our list of 10 transportation as a service stocks to buy. The firm operates over 32,313 route miles that link the Pacific and Gulf ports with gateways inside the United States. UNP stock has returned more than 43% to investors over the past twelve months. The company has a market cap of more than $149 billion. The company provides railroad and freight transportation services to businesses across the US.

Union Pacific Corporation stands to benefit from a proposed national infrastructure overhaul plan of President Biden. The share price of the firm has also soared in recent weeks as business activity resumes following easing of COVID-19 lockdown restrictions.

At the end of the fourth quarter of 2020, 68 hedge funds in the database of Insider Monkey held stakes worth $3.5 billion in the firm, down from 74 in the preceding quarter worth $3.9 billion.

Vltava Fund, in its Q1 2021 investor letter, mentioned Union Pacific Corporation (NYSE: UNP). Here is what Vltava Fund has to say about Union Pacific Corporation in its letter:

“There was a slight change in Vltava Fund’s portfolio in the first quarter. We sold shares of Union Pacific. It was one of three stocks we bought a year ago at the market bottom. Although from a P/E viewpoint this was one of our most expensive purchases ever, the shares worked out quite well, and, when they were more than 90% higher at the beginning of this year, we decided to take profit and put the money into stocks with more attractive valuations.”

3. DoorDash, Inc. (NYSE: DASH)

Number of Hedge Fund Holders: 38

DoorDash, Inc. (NYSE: DASH) is a California-based company that delivers food. It was founded in 2012 and is placed third on our list of 10 transportation as a service stocks to buy. The firm went public in late 2020 with a market valuation of $72 billion. Since its founding in 2012, it has captured a huge chunk of the food delivery market in the US. The firm also gained in prominence during the pandemic as food delivery businesses took off, and DASH reported that sales had tripled in 2020 compared to the previous year.

On April 27, investment firm Needham started coverage on DoorDash, Inc. with a Buy rating and a price target of $175. Bernie McTernan, an analyst at the firm, said that the company was a leader in the restaurant delivery sector, a position that had solidified during the pandemic. DoorDash stock was up close to 0.3% after the ratings update.

Out of the hedge funds being tracked by Insider Monkey, New York-based investment firm Coatue Management is a leading shareholder in the firm with 8.7 million shares worth more than $1.2 billion.

2. FedEx Corporation (NYSE: FDX)

Number of Hedge Fund Holders: 63

FedEx Corporation is a Tennessee-based delivery services company founded in 1971. It is placed second on our list of 10 transportation as a service stocks to buy. FedEx stock has returned more than 162% to investors over the past twelve months. The firm has operations in 220 countries and offers express transportation, small-package ground delivery, and freight transportation. It markets supply chain management solutions and global ocean and air freight forwarding services.

On May 5, FedEx Corporation announced that it would be becoming the official sponsor of popular European footballing competition UEFA Champions League for three years. FedEx shares jumped more than 1% after the announcement.

At the end of the fourth quarter of 2020, 63 hedge funds in the database of Insider Monkey held stakes worth $2 billion in the firm, down from 71 in the preceding quarter worth $2.5 billion.

In its Q4 2020 investor letter, Longleaf Partners Fund highlighted a few stocks and FedEx Corp (NYSE:FDX) is one of them. Here is what the fund said:

“FedEx (76%, 3.69%; 3%, 0.29%), the global logistics company, was the top contributor in 2020 after an outstanding year for the business that wasn’t simply the result of COVID, even if the company has been a strong beneficiary of the rapid societal changes driven by it. The share price returned over 85% in the last six months. Over the last quarter, Ground revenues increased 38%, while operating income grew 61%, despite another round of heavy investments weighing down margins temporarily into the single-digits. The company is indispensable for the United States’ e-commerce deliveries and is reaping the rewards of its investments in previous years to gear up for 7-day delivery. The Express segment is still benefitting from fewer passenger flights diminishing competing underbelly capacity. Despite the sharp appreciation, the stock trades at a reasonable mid-teens P/E multiple on forward earnings, and we expect the value to grow double-digits annually from here. FedEx has done its part to give back this year in the face of COVID. Since the onset of the pandemic, FedEx has delivered more than 55 kilotons of personal protective equipment, including more than two billion face masks, and more than 9,600 humanitarian aid shipments around the globe. More recently, FedEx was tapped to deliver the first wave of Pfizer-BioNTech vaccines across the US, and its infrastructure will be critical to successfully disseminating the vaccines.”

1. Uber Technologies, Inc. (NYSE: UBER)

Number of Hedge Fund Holders: 135

Uber Technologies, Inc. is a California-based technology firm that primarily runs a ride-hailing service. It was founded in 2009 and is ranked first on our list of 10 transportation as a service stocks to buy. Uber has returned more than 65% to investors over the past twelve months and the stock has been gaining as the vaccine rollout enables for business activities to resume. In addition to ride-hailing, the firm offers food delivery, package delivery, couriers, and freight transportation as well.

Uber Technologies, Inc. posted encouraging earnings results for the first quarter of 2021 in March with gross bookings, food delivery revenue, and mobility trends improving and boding well for the rest of the fiscal year.

Out of the hedge funds being tracked by Insider Monkey, California-based investment firm Altimeter Capital Management is a leading shareholder in the firm with 28 million shares worth more than $1.4 billion.

You can also take a peek at 10 Best Travel Stocks to Buy Right Now, and 10 Best Automotive Stocks to Invest in Now.

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