11 Best Logistics Stocks to Invest in Right Now

4. XPO, Inc. (NYSE:XPO)

Number of Hedge Funds: 48

XPO, Inc. (NYSE:XPO) serves as a leader in asset-based less-than-truckload (LTL) freight transportation in North America. The firm caters to approximately 54,000 customers with 611  locations and 38,000 employees in North America and Europe, with headquarters in Greenwich, Connecticut.

XPO has been in the LTL business for over three decades, with 18 billion pounds of freight moved per year, enabled by its proprietary technology. The firm benefits from an extensive network offering coast-to-coast coverage as it covers 99% of all US zip codes. The network doesn’t end here as the firm offers efficient cross-border and offshore service to Canada, Mexico, Alaska, Hawaii, and Puerto Rico. The firm manages volume for customers of every size with 9,600 tractors, 34,000 trailers, and more than 13,000 professional drivers.

The North American LTL industry offers a compelling environment to XPO, Inc. (NYSE:XPO). Favorable industry dynamics include a $52 billion bedrock industry for the US economy with almost 75% share held by top 10 LTL players, diverse demand across verticals, and an attractive pricing environment for over a decade, with a positive year-over-year industry pricing each year.

While a soft freight environment was experienced in the third quarter, XPO, Inc. (NYSE:XPO) successfully boosted its adjusted EBITDA by 20% and adjusted diluted EPS by 16%, companywide. Due to higher yield in the North American LTL segment and volume growth in the European Transportation segment, revenue increased year-over-year. Regarding the future, the chief executive officer of XPO, Mario Harik, remains confident in the positioning of the business to accelerate earnings growth on the freight market recovery.