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Insider Trading & Hedge Fund Data, and Investment Newsletter From Insider Monkey

Insider Trading & Hedge Fund Data, and Investment Newsletter From Insider Monkey

US Politics

US Politics

Is GXO Logistics, Inc. (GXO) the Best Freight Stock to Buy According to Hedge Funds?

Insider Trading & Hedge Fund Data, and Investment Newsletter From Insider Monkey
Summary
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80% Informative

GXO Logistics, Inc. ( NYSE : GXO ) is the blood of the global economy.

The freight sector is the backbone of trade and the gross domestic product of every country.

The year 2024 was not the best for freight activity in the US , as almost 2 years of high interest rates and past inflation finally took a toll on consumption, industrial activity, and construction.

The Atlanta Fed and other reputable research boutiques have drastically cut their estimates of GDP growth for 2025 , which puts transportation stocks out of favor again.

According to the principles of value investing, the trough of the business cycle is the best time to acquire good companies at exceptional prices.

GXO Logistics, Inc. ( NYSE : GXO ) ranks 4th on our list of best best best freight stocks to buy according to hedge funds.

The company generated revenue of $11.7 billion for the full year 2024 , growing 20% with 3% organic growth, nearly doubling its revenue since 2020 .

The exceptional operating return on invested capital of 46% , which is well above the long-term targets.

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