10 Best Shipping Stocks To Invest In Now

5. XPO, Inc. (NYSE:XPO)

Number of Hedge Fund Investors: 48

XPO, Inc. (NYSE:XPO) is a provider of freight transportation services, based in Greenwich, Connecticut. The company focuses on two core business segments: North American Less-Than-Truckload (LTL) and European Transportation. XPO, Inc. (NYSE:XPO) serves a diverse range of industries, including retail, e-commerce, manufacturing, food and beverage, and consumer goods.

XPO, Inc. (NYSE:XPO) is making significant investments in its network to drive long-term growth and enhance operational efficiency. Over the past three years, the company has added nearly 15,000 trailers and over 4,000 tractors while opening 21 of the 28 new service centers acquired in December 2023. These efforts aim to build density, improve service, and reduce costs. By increasing the proportion of in-sourced linehaul miles, XPO, Inc. (NYSE:XPO) plans to lower its dependence on third-party carriers. Furthermore, the company is emphasizing the management of labor costs, fleet maintenance expenses, and other variable costs.

XPO, Inc. (NYSE:XPO) has launched several high-margin accessorial services, including retail store rollouts, Must Arrive By Date, and Trade Show services, which are increasingly becoming popular among customers. These services not only boost revenue but also enhance customer loyalty. XPO, Inc. (NYSE:XPO) aims to increase accessorial revenue to 15% of total revenue within the next five years.