9 Best Trucking Stocks To Buy

2. XPO Logistics Inc. (NYSE:XPO) 

Number of Hedge Fund Investors: 48              

One of the Best Freight Stocks, XPO, Inc. (NYSE:XPO), is a top provider of freight transportation services based in Greenwich, Connecticut. The business is getting closer to being a less-than-truckload carrier that relies solely on assets. The company’s two primary business segments are European Transportation and North American Less-Than-Truckload (LTL). It operates on a global scale. A diverse range of industries are served by the company, including manufacturing, food & beverage, retail, e-commerce, and consumer products.

XPO Logistics, Inc. (NYSE:XPO)’s Q3 of 2024 revenue of $2.05 billion, up 3.7% from Q3 2023’s $1.98 billion, was fueled by increased yields in North American LTL and higher volumes in European transportation. The North American LTL segment’s revenue increased 1.9% to $1.25 billion, while its yield increased 6.7% (fuel excluded). Higher volumes enabled the European Transportation segment’s revenue to rise by 6.8% to $803 million. Moreover, operating cash flow grew by 13.30% year over year.

The price objective for XPO Logistics, Inc. (NYSE:XPO) was increased by JPMorgan from $146 to $160. The company claims that less-than-truckload equities “have rapidly re-rated once again” in response to the election results and the perception that the freight recession is ending. The analyst informs investors in a research note that sentiment in the sub-sector is still favorable and that JPMorgan considers less-than-truckload to be the most preferred category in transport, with positioning continuing to move away from U.S. railroads. It modified the models to better represent the operating performance in November.

Farhad Nanji And Michael Demichele’s MFN Partners was the largest stakeholder in the firm from among the funds in Insider Monkey’s database. It owns 11.43 million shares worth $1.23 billion as of Q3.

ClearBridge Large Cap Value Strategy stated the following regarding XPO, Inc. (NYSE:XPO) in its Q3 2024 investor letter:

“Among transports, we maintained our preference for less than truckload (LTL) provider XPO, Inc. (NYSE:XPO), to which we added during the period. We funded the XPO addition first by trimming and ultimately exiting United Parcel Service. UPS’s undemanding valuation notwithstanding, we think a healthier industry structure and better pricing dynamics make XPO a better longer-term investment.”