7 Best Warehouse Stocks To Buy According to Analysts

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

Average Upside Potential: 39.44%

Number of Hedge Fund Holders: 29

GXO Logistics, Inc. (NYSE:GXO) is a dominant contract logistics company with a presence in 27 countries. The company designs and operates the most technologically advanced logistics solutions in the world. It serves a range of industries including aerospace, agribusiness, e-commerce, healthcare, and the public sector among others. The firm is headquartered in Greenwich, Connecticut.

The company serves as a global leader in providing cutting-edge logistics solutions for multinational companies and blue-chip market leaders. With approximately 200 million square feet of warehouse space and 970 warehouse locations, the numbers for the firm represent a strong market position. GXO delivers an outsized growth driven by secular tailwinds including e-commerce, outsourcing, and automation. With leadership in technology and automation combined with a sound financial profile, the GXO difference is evident.

The second quarter proved to be promising for GXO Logistics, Inc. (NYSE:GXO). The firm witnessed record revenue of $2.8 billion, up 19% year-over-year, with organic revenue growth of 2%. Simultaneously, the company is set to sign a record amount of new business in 2024 and signed new business wins of approximately $270 million in annualized revenue during the quarter. A strong consumer demand in the UK and European markets and the momentum in business are positive signs for the firm.

A global scale, tech and automation leadership, structural organic growth, and resilient margins make GXO Logistics, Inc. (NYSE:GXO) an attractive warehouse stock to invest in. As of October 3, the average upside potential for the stock is 39.44%.

While we acknowledge the potential of GXO as an investment, our conviction lies in the belief that some deeply undervalued AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for a deeply undervalued AI stock that is more promising than GXO but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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