Potential Multi-Year Growth for Saia (SAIA) If Freight Industry Rebounds

The London Company, an investment management company, released “The London Company SMID Cap Strategy” second quarter 2025 investor letter. A copy of the letter can be downloaded here. Following a downturn in Q1, U.S. stocks experienced a double-digit gain in Q2, amid volatility stemming from tariff news. A risk-on rally followed due to a temporary pause in tariff escalations, widespread optimism around enterprise AI, and a healthy earnings outlook. Against this backdrop, the portfolio fell 0.6% (-0.8% net) during the second quarter vs. an 8.6% increase in the Russell 2500 Index. Sector allocation contributed to the fund’s performance in the quarter, while stock selection detracted. Please review the fund’s top 5 holdings to gain insight into their key selections for 2025.

In its second quarter 2025 investor letter, The London Company SMID Cap Strategy highlighted stocks such as Saia, Inc. (NASDAQ:SAIA). Saia, Inc. (NASDAQ:SAIA) is a North America-based transportation company. The one-month return of Saia, Inc. (NASDAQ:SAIA) was 9.19%, and its shares lost 23.58% of their value over the last 52 weeks. On July 28, 2025, Saia, Inc. (NASDAQ:SAIA) stock closed at $323.23 per share, with a market capitalization of $8.61 billion.

The London Company SMID Cap Strategy stated the following regarding Saia, Inc. (NASDAQ:SAIA) in its second quarter 2025 investor letter:

“Saia, Inc. (NASDAQ:SAIA) – SAIA remained weak this quarter as the lingering “freight recession” drags on for almost its third year. We remain convicted in our ownership of SAIA due to its solid balance sheet and strong network growth plan. We believe the company could be a multi-year compounder, assuming the freight industry returns to normal demand patterns.

Increased: Saia, Inc. (SAIA) – With recent weakness and a smaller beginning weight in the portfolio, we felt it was prudent to add to the shares and make it a 3% position.”

Is Saia, Inc. (SAIA) the Best Freight Stock to Buy According to Hedge Funds?

A long line of trucks transporting goods across the open road, symbolizing the long-distance transportation services of the company.

Saia, Inc. (NASDAQ:SAIA) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 35 hedge fund portfolios held Saia, Inc. (NASDAQ:SAIA) at the end of the first quarter, compared to 31 in the previous quarter. In the second quarter of 2025, Saia, Inc. (NASDAQ:SAIA) announced revenue of $817 million, marking a 0.7% decrease compared to the same quarter last year. While we acknowledge the risk and potential of Saia, Inc. (NASDAQ:SAIA) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than Saia, Inc. (NASDAQ:SAIA) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered Saia, Inc. (NASDAQ:SAIA) and shared Polen US SMID Company Growth Strategy’s views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.