12 Best Freight Stocks to Buy According to Hedge Funds

4. GXO Logistics, Inc. (NYSE:GXO)

Number of Hedge Fund Holders: 49

​​​GXO Logistics, Inc. (NYSE:GXO) emerged as an independent company in 2021, after a spin-off from XPO Logistics, in an attempt to unlock the value of this specialized supply chain solutions provider. GXO possesses unique expertise in leveraging innovative technologies like AI and robotics to optimize e-commerce fulfillment operations, warehouse management, and cold chain logistics. More than 30% of Fortune 100 companies are GXO’s, which includes large retailers, brand managers, and OEMs, which proves the company’s leading position in the logistics space.

GXO Logistics, Inc. (NYSE:GXO) delivered record revenue and adjusted EBITDA in 2024, with adjusted EBITDA growing 30% YoY in Q4 alone. The company generated revenue of $11.7 billion for the full year 2024, growing 20% with 3% organic growth, nearly doubling its revenue since 2020. The company achieved significant commercial success by closing over $1 billion of new business wins for the second consecutive year, including contracts with brands like Levi’s, LG, PUMA, and Tchibo. A landmark $2.5 billion total lifetime value fulfillment operation was secured in the healthcare sector, demonstrating expansion into new verticals.

For 2025, GXO Logistics, Inc. (NYSE:GXO) expects to deliver 3% to 6% organic growth with an adjusted EBITDA of $840 million to $860 million. The company’s technology leadership continues to be a key differentiator, with significant progress made in AI-enabled warehouse solutions, delivering productivity improvements of 3 to 4x in stock replenishments for major retailers. The sales pipeline is up 15% YoY as of the end of the most recent quarter, with the Americas pipeline up 20%, indicating strong momentum for future growth. The exceptional operating return on invested capital of 46%, which is well above the long-term targets, makes GXO one of the best freight stocks to buy.