Freedom: Six small-cap transportation names most popular with hedge funds in 2025

Freedom Broker, at the request of Oninvest, has looked at which transportation-sector small caps were the most popular among hedge funds as of the end of 2025. The sample includes six names with market capitalizations below $6 billion during the reporting period, with share prices not exceeding $30.

Forward Air

Number of hedge funds holding shares: 67

Forward Air specializes in expedited freight and last-mile delivery services, particularly for air cargo and time-sensitive shipments. In 2025, the company reported a 0.8% increase in revenue to $2.5 billion. The net loss totaled $141.7 million versus a loss of $1.12 billion a year earlier. CEO Shawn Stewart said the company had been aligning its cost structure with demand and executing its transformation strategy.

Shares of Forward Air have fallen 24.5% year to date. Three Wall Street analysts rate the stock “buy,” and three “hold.” The average target price of $35.30 per share implies nearly 100% upside from the Thursday closing price.

ZIM Integrated Shipping

Number of hedge funds holding shares: 58

Israel-based ZIM Integrated Shipping Services is one of the world’s largest container shipping companies and charters most of its vessels. In February, the company said it would be acquired by German shipping giant Hapag-Lloyd for $4.2 billion, with the deal expected to close by the end of 2026 pending regulatory and Israeli government approvals.

In its 2025 results, ZIM reported an 18% decline in revenue to $6.9 billion, driven by lower freight rates and reduced shipping volumes. Net income fell 78% to $481 million.

ZIM shares have gained more than 24% year to date. According to MarketWatch data, one analyst rates the stock “buy,” one “hold,” and three “sell.” The average target price of $22.83 per share implies 13.5% upside.

Ardmore Shipping

Number of hedge funds holding shares: 58

Ardmore Shipping transports petroleum products and chemicals worldwide using a fleet of mid-sized tankers. In 2025, adjusted earnings declined 67.5% to $38.8 million. The company’s outlook for the first quarter of 2026 is optimistic: based on already booked voyages, covering about 50% of its fleet, rates for MR tankers have risen by around 15% to $29,100 per day – supported by geopolitical tensions.

Shares of Ardmore Shipping have risen 45.8% year to date. According to MarketWatch data, three analysts rate the stock “buy.” The average target price of $18.30 per share implies about 18.5% upside.

Sun Country Airlines

Number of hedge funds holding shares: 57

Sun Country Airlines operates scheduled passenger flights, charter services, and cargo transportation, including for Amazon. In early 2026, the company announced a planned merger with rival carrier Allegiant Air, which drove its shares up more than 10% following the January 12 trading session.

In its 2025 report, Sun Country Airlines posted a 4.7% increase in revenue to a record $1.13 billion. Net income was largely unchanged at $52.8 million. CEO Jude Bricker noted 2025 marked the company’s fifth consecutive profitable year.

Shares of Sun Country Airlines have gained 21.7% year to date. Four analysts rate the stock “buy,” and four “hold.” The average target price of $20.29 per share implies nearly 16% upside.

Covenant Logistics 

Number of hedge funds holding shares: 57

Covenant Logistics focuses on complex, time-sensitive freight transportation. The company reported full-year 2025 revenue of $1.16 billion, up 2.65%. Net income declined by nearly 80% to $7.24 million. In a press release, CEO David R. Parker said results were affected by the longest U.S. government shutdown in history, higher costs of securing transportation capacity, and increased expenses related to the opening of a new warehouse.

Shares of Covenant Logistics have risen more than 30% year to date. Three analysts rate the stock “buy,” and one “hold.” The average target price of $31.67 per share implies about 9.5% upside.

Marten Transport

Number of hedge funds holding shares: 56

Marten Transport is a logistics company specializing in truckload shipping across North America. In 2025, the company reported an 8.3% decline in revenue to $883.7 million. Net income fell by about a third to $17.4 million. CEO Randolph L. Marten said results were impacted by “the Great Freight Recession – the longest, deepest and most debilitating downturn for our industry since trucks began hauling freight,” driven by excess capacity, weak demand, declining freight rates, and the cumulative effect of inflationary increases in operating costs. At the same time, the company noted that fourth-quarter earnings rose 66% versus the previous quarter.

Shares of Marten Transport have gained 22.6% year to date. Three Wall Street analysts rate the stock “hold,” and one assigns an “overweight” rating. The average target price of $15.70 per share implies about 12% upside.