Billionaire Daniel Sundheim’s Top 15 Stock Picks Heading Into 2025

2. XPO, Inc. (NYSE:XPO)

D1 Capital Partners’ Equity Stake: $506.48 Million

Number of Hedge Fund Holders as of Q3 2024: 48

XPO, Inc. (NYSE:XPO) provides freight transportation services. It operates in over 20 countries with more than 700 locations. The company serves various industries, including retail, manufacturing, e-commerce, and healthcare. XPO combines technology, scale, and quality in freight management, supply chain optimization, and last-mile delivery.

Increased focus on revenue quality and cost management has resulted in positive results, even in a soft-demand environment. This might explain why the stock is up by more than 86% for the year, affirming its status as one of billionaire Daniel Sundheim’s top 15 stock picks heading into 2025. XPO, Inc. (NYSE:XPO) delivered impressive third-quarter results on October 30, 2024, as it continued to grow its business in a soft freight environment.

Revenue in the quarter logged in at $2.05 billion compared to $1.98 billion for the same quarter last year. The increase was due to higher North American LTL segment yields and European volume growth. Net income surged to $95 million compared to $86 million a year ago.

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.”