Between strong growth in e-commerce and outsourced logistics, share growth in multiple parts of the business, and ongoing efficiency improvements from tech investments, things are pretty much going XPO Logistics’ (XPO) way this day. Moreover, with ongoing share growth and efficiency gains still possible, I don’t think the operational improvement story is necessarily over.
It’s been a little while since I updated my thoughts on XPO, and since my last update, the shares have moved to the high end of the $100 to $120/share value range I saw then, modestly outperforming the S&P, while underperforming Old Dominion (ODFL) and J.B. Hunt (JBHT). Given the trends driving improved operating results (both internal and external), I think there could still be double-digit upside from here, and the spin-off of the logistics business could perhaps unlock more upside, as XPO shares do continue to trade below most sell-side sum-of-the-parts estimates.
Follow the link to the full article:
Share Growth, Demand Growth, And Technology Opportunities Driving XPO Logistics
No comments:
Post a Comment