In this article, we will discuss the Top 10 Transportation and Industrial Stocks to Buy Now.
As per PwC, deal activity in the broader transportation and logistics (T&L) sector was consistent in early 2025 versus the same period in 2024. In the US, deal volume remained muted, with companies tackling sustained macroeconomic pressure, policy changes, and volatile geopolitical conditions. That being said, T&L leaders have been focusing on strategic alignment over volume, and subsectors such as airfreight, logistics, and marine ports and terminals continue to attract the most interest, added the firm.
Key Trends Affecting Broader Transportation and Industrial Sector
The US factory production hardly increased in May, with an increase in motor vehicle and aircraft output partially being offset by weakness elsewhere, as highlighted by Reuters. Furthermore, the outlook for manufacturing is eclipsed by tariffs. Reuters noted that Donald Trump’s shifting tariffs policy remains a headwind to manufacturing, which makes up for 10.2% of the economy and remains dependent on imported raw materials.
However, PwC highlighted that the investor appetite for T&L infrastructure is robust. As per the firm, the carriers continue to focus their portfolios on specialized growth areas possessing robust margins and increased entry barriers like cold chain services, healthcare and pharmaceutical logistics, and reverse logistics, among others.
Amidst such trends, we will now have a look at the Top 10 Transportation and Industrial Stocks to Buy Now.
A close-up of a large industrial compressor in the oil and gas industry.
Our Methodology
To list the Top 10 Transportation and Industrial Stocks to Buy Now, we used a screener to shortlist the stocks catering to the broader transportation and industrials sector. Next, we chose the ones popular among hedge funds. Finally, the stocks were ranked in ascending order of their hedge fund sentiment, as of Q1 2025.
Why are we interested in the stocks that hedge funds pile into? 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).
Top 10 Transportation and Industrial Stocks to Buy Now
10. Heartland Express, Inc. (NASDAQ:HTLD)
Number of Hedge Fund Holders: 18
Heartland Express, Inc. (NASDAQ:HTLD) is one of the Top 10 Transportation and Industrial Stocks to Buy Now. Baird resumed coverage of the company’s stock with a “Neutral” rating and a price objective of $9. The firm is resuming its coverage on the broader trucking, logistics, and rail sectors. It has a constructive, but balanced view of the near-term risks as well as earnings prospects. As per the analyst, while the balance of 2025 remains uncertain, the conditions that tend to precede a turn remain largely in place.
The company’s Heartland Express brand remained profitable during the 3 months ended March 31, 2025. However, it did not reflect the operating ratio and financial results that it expected and delivered over the previous periods. It believes that Heartland Express continued to operate in line with the best full truckload carriers in the industry.
Heartland Express, Inc. (NASDAQ:HTLD) has been strategically shrinking its fleet to right-size to freight demand, along with evaluating all the cost measures for opportunities for efficiency. Heartland Express, Inc. (NASDAQ:HTLD) opines that cost improvements and transportation system changes, which are already underway or planned for each of the brands, can provide a better cost structure and operating visibility to deliver a path towards operating profitability for the company’s consolidated operations.
Heartland Express, Inc. (NASDAQ:HTLD) operates as a short, medium, and long-haul truckload carrier and transportation services provider. Palm Valley Capital Management, an investment management firm, released its Q1 2025 investor letter. Here is what the fund said:
“During the period, we added to our weightings in Kelly Services (ticker: KELYA), Resources Connection (ticker: RGP), and Heartland Express, Inc. (NASDAQ:HTLD). We increased our exposure to Heartland Express on share price weakness. The business continues to generate free cash flow, and we believe the trucking industry will recover from its cyclical trough.”
9. Allegiant Travel Company (NASDAQ:ALGT)
Number of Hedge Fund Holders: 24
Allegiant Travel Company (NASDAQ:ALGT) is one of the Top 10 Transportation and Industrial Stocks to Buy Now. Evercore ISI upgraded the company’s stock to “Outperform” from “In Line” with a price objective of $75, as reported by The Fly. This upgrade comes amidst the company’s plans to sell its Sunseeker Resort, enabling it to focus entirely on the leisure-focused airline operations. Therefore, the firm cited business model simplification as a critical factor in the decision to upgrade Allegiant Travel Company (NASDAQ:ALGT)’s stock.
Allegiant Travel Company (NASDAQ:ALGT)’s core business has a flexible model with the capability to adjust capacity on the basis of demand, and such strengths were less visible recently. The firm sees 2025 as a transition year as the company grows into the infrastructure investments already made. With the expected hotel sale and a more modest capacity growth expected into 2026, the firm opines that Allegiant Travel Company (NASDAQ:ALGT) remains well-placed to restore its core earnings power. Notably, Blackstone and Allegiant Travel Company (NASDAQ:ALGT) announced that funds affiliated with Blackstone Real Estate have decided to acquire Sunseeker Resort Charlotte Harbor for $200 million.
Allegiant Travel Company (NASDAQ:ALGT) is a leading player in the broader industrials sector since it provides air transportation services.
Diamond Hill Capital, an investment management company, released its Q1 2025 investor letter. Here is what the fund said:
“Other bottom Q1 contributors included First Advantage, Civitas Resources and Allegiant Travel Company (NASDAQ:ALGT). Regional airline Allegiant Travel fell against a challenging macroeconomic backdrop and concerns about consumer spending, which could hurt customer demand. Further, there are some concerns the recently announced US tariffs could impact Boeing’s ability to deliver new planes to Allegiant as expected. However, we maintain our conviction in Allegiant’s resiliency in the long term and are maintaining our position.”
8. Ryder System, Inc. (NYSE:R)
Number of Hedge Fund Holders: 25
Ryder System, Inc. (NYSE:R) is one of the Top 10 Transportation and Industrial Stocks to Buy Now. Wolfe Research upgraded the company’s stock from “Peerperform” to “Outperform.” The firm highlighted Ryder System, Inc. (NYSE:R)’s unique position in the trucking coverage, mentioning that the company demonstrates modest EPS upside potential as compared to consensus estimates. The company’s Q1 2025 was the second consecutive quarter with YoY earnings growth, aided by the strength of contractual businesses.
Ryder System, Inc. (NYSE:R) is on track to achieve the expected benefits in 2025 stemming from the strategic initiatives. The benefits consist of its lease pricing initiative, savings from the multi-year maintenance initiative, realization of acquisition synergies, and optimization of its omnichannel retail network. Furthermore, Ryder System, Inc. (NYSE:R)’s capability to generate ROE of 17% in the current environment highlights the consistent execution and resilience of its transformed business model, according to the company’s top management.
In Q1 2025, Ryder System, Inc. (NYSE:R)’s net cash provided by operating activities from continuing operations came in at $651 million as compared to $526 million in 2024. This mainly demonstrates reduced working capital needs. Furthermore, the FCF (non-GAAP) of $259 million, as compared to $13 million in 2024, primarily reflects reduced capital expenditures.
Ryder System, Inc. (NYSE:R) operates as a logistics and transportation company.
7. Textron Inc. (NYSE:TXT)
Number of Hedge Fund Holders: 29
Textron Inc. (NYSE:TXT) is one of the Top 10 Transportation and Industrial Stocks to Buy Now. Goldman Sachs downgraded the company’s stock to “Neutral” from “Buy” with a price objective of $85, down from the prior target of $95, as reported by The Fly. The downgrade comes despite the firm’s belief in tight business jet supply and demand dynamics as well as the potential earnings contribution from Textron Inc. (NYSE:TXT)’s Future Long-Range Assault Aircraft (FLRAA) program win.
Goldman Sachs highlighted that Textron Inc. (NYSE:TXT) seems to be losing its market share in the business jet segment, with its Systems and Industrial divisions showing limited growth potential. As per the analyst, the business jet fundamentals remain strong, but are no longer incrementally improving. Goldman Sachs also pointed out that while Textron Inc. (NYSE:TXT)’s stock continues to trade at lower valuation multiples versus several of its aerospace and defense peers, this valuation gap has persisted for years, and there is no clear catalyst for a change on the horizon.
In Q1 2025, Textron Inc. (NYSE:TXT) saw robust growth in military and commercial product lines at Bell, while at Aviation, operations improved as the factory progressed towards pre-strike performance levels while ramping production. Furthermore, at Textron Specialized Vehicles, the company completed the sale of the Powersports business, which includes the Arctic Cat brand and its operations.
Textron Inc. (NYSE:TXT) is a leading player in the broader industrial sector since it operates throughout several critical areas of this sector, including aerospace, defense, and manufacturing.
6. SkyWest, Inc. (NASDAQ:SKYW)
Number of Hedge Fund Holders: 33
SkyWest, Inc. (NASDAQ:SKYW) is one of the Top 10 Transportation and Industrial Stocks to Buy Now. Evercore ISI analyst Duane Pfennigwerth upgraded the company’s stock to “Outperform” from “In Line” with a price objective of $120, as reported by The Fly. The upgrade comes as the company experiences robust demand from legacy airline customers, as per Evercore ISI.
As per the firm’s analyst, pilot production continues to exceed expectations because of reduced attrition rates, which addresses the critical constraint in the post-COVID recovery period. Furthermore, SkyWest, Inc. (NASDAQ:SKYW) is also finding creative growth opportunities for the existing fleet. Also, legacy carriers have been prioritizing the restoration of hub capacity and are relying on SkyWest, Inc. (NASDAQ:SKYW), considering its demonstrated reliability over the previous 5 years.
Also, Evercore ISI noted that the company’s net debt and leverage remain at the lowest levels in more than a decade and continue to decrease. Furthermore, aircraft debt for a significant portion of the E175 fleet is expected to be fully amortized in 2026, which the firm opines can offer more favorable FCF dynamics.
SkyWest, Inc. (NASDAQ:SKYW), through its subsidiaries, is in the operation of a regional airline in the US.
5. C.H. Robinson Worldwide, Inc. (NASDAQ:CHRW)
Number of Hedge Fund Holders: 40
C.H. Robinson Worldwide, Inc. (NASDAQ:CHRW) is one of the Top 10 Transportation and Industrial Stocks to Buy Now. Wolfe Research upgraded the company’s stock to “Outperform” from “Peer Perform” with a price objective of $112, as reported by The Fly. The firm acknowledged potential EPS risk in Q2 2025, mainly because of weaker Forwarding results. However, the firm highlighted that C.H. Robinson Worldwide, Inc. (NASDAQ:CHRW) forms part of a small group of stocks where the estimates surpass the consensus forecasts for calendar year 2026. This reflects healthier long-term performance potential than being recognized by the market currently.
Furthermore, Wolfe Research’s analyst noted that as investor focus starts to shift towards 2026 performance over the upcoming months, C.H. Robinson Worldwide, Inc. (NASDAQ:CHRW)’s valuation tends to be attractive on an absolute and relative basis. In Q1 2025, C.H. Robinson Worldwide, Inc. (NASDAQ:CHRW)’s gross profits rose 1.5% to $657.4 million. The adjusted gross profits increased 2.3% to $673.1 million, mainly because of increased adjusted gross profit per transaction in the company’s truckload and LTL services. In order to support companies in dealing with volatility in the world economy, C.H. Robinson Worldwide, Inc. (NASDAQ:CHRW) is opening industry-leading Item-level Solutions to all its customers.
C.H. Robinson Worldwide, Inc. (NASDAQ:CHRW) is engaged in providing freight transportation and related logistics and supply chain services.
4. Oshkosh Corporation (NYSE:OSK)
Number of Hedge Fund Holders: 44
Oshkosh Corporation (NYSE:OSK) is one of the Top 10 Transportation and Industrial Stocks to Buy Now. Goldman Sachs analyst Jerry Revich upgraded the company’s stock to “Buy” from “Neutral” with a price objective of $131, up from the prior target of $124, as reported by The Fly. The firm noted that consensus estimates for Oshkosh Corporation (NYSE:OSK) embed tariff risks, mentioning that it anticipates improvement in the Transportation margins, thanks to the completed contract renewals for tactical wheeled vehicle products after a period of underperformance post-COVID.
Furthermore, the firm noted that the used construction inventories have been declining YoY for the first time since late 2022. Also, the new equipment destocking is more than halfway complete. With a healthy foundation and clear vision, Oshkosh Corporation (NYSE:OSK) continues to target healthy revenue and adjusted EPS growth over the upcoming 3 years. Oshkosh Corporation (NYSE:OSK) highlighted that multi-year backlogs as well as existing contracts in its Vocational and Transport segments aid ~50% of targeted revenue growth in 2028.
The company is expected to capitalize on critical industry trends and anticipates solid, long-term demand for its products to fuel success. Investment management company First Pacific Advisors released its Q1 2025 investor letter. Here is what the fund said:
“Oshkosh Corporation (NYSE:OSK) is a specialty vehicle manufacturer that operates across three segments – Access Equipment (JLG lifts and telehandlers), Vocational (fire trucks, airport equipment, dump trucks, etc.), and Defense (which includes the new US Postal Service trucks). The Fund has owned shares of OSK since its inception in 2002 but has added and trimmed since then. OshKosh has a long history of earnings growth and strong returns on capital. In 2024, OSK shares declined because of lowered expectations for JLG earnings. The company’s leverage is low, it has a long and successful operating history, and its shares trade at roughly eight times our estimate of normal earnings. We have incrementally added to our position.”
Oshkosh Corporation (NYSE:OSK) is engaged in designing, manufacturing, and servicing heavy-duty specialty vehicles and equipment used throughout several industrial sectors.
3. MasTec, Inc. (NYSE:MTZ)
Number of Hedge Fund Holders: 57
MasTec, Inc. (NYSE:MTZ) is one of the Top 10 Transportation and Industrial Stocks to Buy Now. Roth Capital analyst Philip Shen began coverage of the company’s stock with a “Buy” rating and a price objective of $210, as reported by The Fly. As per the analyst, MasTec, Inc. (NYSE:MTZ) happens to be one of the best-positioned companies to support the acceleration of electrical infrastructure buildout. Roth/MKM placed the company as second only to Quanta Services in terms of the strategic positioning in the broader infrastructure space, and it highlighted MasTec, Inc. (NYSE:MTZ)’s industry-leading exposure to electric utility/renewables as a critical advantage.
The company saw mid-single digit growth in revenue and adjusted EBITDA in Q1 2025, and EPS easily exceeded the guidance. MasTec, Inc. (NYSE:MTZ) witnessed ongoing backlog development to record consolidated levels, which include a more than doubling of backlog for the Pipeline Infrastructure segment since year-end. Apart from executing on growth during Q1 2025, MasTec, Inc. (NYSE:MTZ) generated another quarter of solid cash flow and closed the period with net debt leverage of 1.9x. The company saw strong 24% growth from the prior year in its backlog and 11% growth sequentially, thanks to the increases in all 4 segments.
MasTec, Inc. (NYSE:MTZ) is an infrastructure construction company that is engaged in providing engineering, building, installation, maintenance, and upgrade services for communications, energy, utility, and other infrastructure.
2. Cintas Corporation (NASDAQ:CTAS)
Number of Hedge Fund Holders: 58
Cintas Corporation (NASDAQ:CTAS) is one of the Top 10 Transportation and Industrial Stocks to Buy Now. Wells Fargo upgraded the company’s stock to “Equal Weight” from “Underweight” with a price objective of $221, up from the prior target of $196, as reported by The Fly. The upgrade demonstrates the firm’s expectation of Cintas Corporation (NASDAQ:CTAS) achieving greater market share gains from competitors. Furthermore, the firm cited the company’s superior infrastructure, less unionized workforce, healthier balance sheet, and more tenured management team as critical advantages in the broader competitive environment.
Overall, the firm highlighted that Cintas Corporation (NASDAQ:CTAS) managed to weather the tough macroeconomic environment better than its peers, and the firm believes that there is an attractive opportunity for Cintas Corporation (NASDAQ:CTAS) to enhance its share gains. In Q3 2025, the company’s revenue came in at $2.61 billion as compared to $2.41 billion in last year’s third quarter, reflecting 8.4% growth. This was positively impacted by 0.9% because of acquisitions and negatively impacted by 0.4% as a result of foreign currency exchange rate fluctuations. Cintas Corporation (NASDAQ:CTAS) updated its annual revenue expectations from the range of $10.255 billion – $10.320 billion to $10.280 billion – $10.305 billion.
Cintas Corporation (NASDAQ:CTAS) is engaged in renting and servicing uniforms and other garments, such as flame-resistant clothing, mats, mops, and shop towels, as well as other ancillary items. It offers its products and services via the distribution network and local delivery routes, or local representatives to small service and manufacturing companies, and well-established corporations. The company’s offerings make it a backbone provider for the broader operational infrastructure, which is critical to the industrial services sector.
1. Union Pacific Corporation (NYSE:UNP)
Number of Hedge Fund Holders: 85
Union Pacific Corporation (NYSE:UNP) is one of the Top 10 Transportation and Industrial Stocks to Buy Now. Baird resumed coverage of the company’s stock with a “Neutral” rating and a price objective of $231, as reported by The Fly. The firm is resuming coverage on the broader trucking, logistics, and rail sectors and has a constructive, but balanced view of the near-term headwinds, risks, and earnings prospects. Furthermore, the firm’s analyst highlighted that the conditions that typically precede a turn are largely in place. However, how the remainder of 2025 unfolds is still uncertain.
In Q1 2025, Union Pacific Corporation (NYSE:UNP)’s operating revenue came in at $6.0 billion, which remained flat on 7% volume growth, while strong core pricing gains were offset by business mix, reduced fuel surcharge revenue, lower other revenue, as well as impact from the leap year. Freight revenue of $5.7 billion rose 1% despite a ~$70 million impact of having one less day in the quarter. Talking about the freight revenue drivers, Union Pacific Corporation (NYSE:UNP)’s robust volume growth in Q1 2025 added 650 bps to the freight revenue.
Union Pacific Corporation (NYSE:UNP) has affirmed its 2025 outlook. Its 2025 EPS growth is expected to be consistent with attaining its 3-year EPS CAGR view of high single to low double-digit growth. Bretton Capital Management, an investment management company, released its Q4 2024 investor letter. Here is what the fund said:
“The main detractor was Dream Finders, taking 1.5% off the fund, and Union Pacific Corporation (NYSE:UNP) was a minor detractor with a -0.2% impact. The rail industry has seen tepid revenue growth the past few years as higher-revenue coal volume declines and is replaced by lower-revenue intermodal volume sourced from ocean and truck carriers. Despite the growth challenge, Union Pacific managed to cut costs and grow earnings per share by 6%. The stock returned -5%.”
While we acknowledge the potential of UNP to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than UNP and that has 100x upside potential, check out our report about this cheapest AI stock.
READ NEXT: 13 Cheap AI Stocks to Buy According to Analysts and 11 Unstoppable Growth Stocks to Invest in Now.
Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.
