11 Best Freight Stocks To Buy Now

6. XPO, Inc. (NYSE:XPO) 

Number of Hedge Fund Investors: 48

XPO, Inc. (NYSE:XPO)  is a leading provider of freight transportation services, headquartered in Greenwich, Connecticut. The company operates globally and focuses on two main business segments: North American Less-Than-Truckload (LTL) and European Transportation. XPO, Inc. (NYSE:XPO) serves a wide array of industries, such as retail, e-commerce, manufacturing, food and beverage, and consumer goods.

XPO, Inc. (NYSE:XPO) is making substantial investments in its network to ensure long-term growth and operational efficiency. Over the past three years, the company has added nearly 15,000 trailers and over 4,000 tractors and opened 21 of 28 new service centers acquired in December 2023. These investments are designed to build density improve service, and reduce costs. By in-sourcing more linehaul miles, XPO, Inc. (NYSE:XPO) aims to reduce its reliance on third-party carriers from 13.6% in Q3, with a target of bringing it below 10% by the end of 2024. This initiative has already saved the company $39 million in Q3 alone and contributed to a 40% reduction in purchased transportation costs year-over-year. Additionally, XPO, Inc. (NYSE:XPO) is focusing on managing labor costs, fleet maintenance costs, and other variable expenses.

XPO, Inc. (NYSE:XPO) has also introduced several high-margin accessorial services, such as retail store rollouts, Must Arrive By Date, and Trade Show services, which are gaining traction with customers. These services not only increase revenue but also strengthen customer loyalty. XPO, Inc.’s (NYSE:XPO) goal is to increase accessorial revenue to 15% of total revenue over the next five years.