Stock in Focus: Xpo Logistics Inc (XPO)

Company Profile:

XPO Logistics, Inc. provides supply chain solutions in the United States, rest of North America, France, the United Kingdom, rest of Europe, and internationally. The company operates in two segments, Transportation and Logistics. The Transportation segment offers less-than-truckload (LTL) services, such as density and day-definite regional, inter-regional, and transcontinental LTL freight services through a network of tractors, trailers, professional drivers, and terminals; and truck brokerage services. The Logistics segment provides a range of contract logistics services, including value-added warehousing and distribution, e-commerce and omnichannel fulfillment, cold-chain logistics, packaging and labeling, factory and aftermarket support, and inventory management, as well as order personalization and supply chain optimization, such as product flow management services. The company was founded in 2000 and is based in Greenwich, Connecticut.

Recent News:

On Nov. 02, 2021, the company announced that revenue increased to $3.27 billion for the third quarter, compared with $2.68 billion for the same period in 2020. Net income from continuing operations attributable to common shareholders was $21 million for the third quarter, compared with $28 million for the same period in 2020.

On Oct. 21, 2021, the company has been recognized by Ford Motor Company as a top supplier in the category of “Treat Customers Like Family,” based on 2020 performance. XPO is Ford’s primary manager of time-critical shipments to manufacturing plants in North America.

Fundamental Analysis:

Ninestocks analyzes several different financial aspects: Growth, Profitability, solvency and efficiency.

Growth – Measures the growth of both the company’s income statement and cash flow.

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Profitability – Measures the historical price movement of the stock.

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Solvency – Measures the solvency of the company based on several ratios.

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Efficiency – Measures the strength and historic growth of a company’s return on invested capital.

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Conclusion:

XPO’s strengths can be seen in its strong growth and better profitability compared with its peers. Technical indicators signal the bullish signs, as there is a bullish crossover in the Stochastic oscillator, the MACD is trying to cross back up and the RSI stands at 46.68 with positive bias. We rate Xpo Logistics Inc (XPO) a STRONG BUY.