XPO Logistics, Inc (XPO) Buy, Sell or Hold

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XPO Logistics, Inc (XPO)

193.10

+8.30 (4.49%)

as of Sep 4, 2026, 8:00:00 pm Market Open.

47 watching

Investor Insights

Sep 5, 2026, 12:00 am

This summary was created by AI, based on 1 opinions in the last 12 months.

XPO Logistics, Inc. is currently experiencing significant momentum, with an impressive 80% increase in its stock price this year. However, a closer examination reveals that it operates with a relatively low free cash flow yield of just 2.5% and a high price-to-earnings (PE) ratio of 40x, raising concerns about its valuation. Given these factors, some experts suggest that it might be prudent to take some profits by selling shares based on its elevated PE ratio. Despite these concerns, analysts maintain a positive outlook for the long-term, highlighting the potential for upside as the company continues to grow and adapt in a competitive logistics market. Investors should weigh this potential against the current valuation metrics when considering their positions in XPO.

Consensus

Mixed

Valuation

Overvalued

Similar

C.H. Robinson,CHRW

BUY

GXO spin-off Splitting up a business can unlock value. GXO is the spin-off from XPO whose CEO boasts a long record of creating value when he ran United Rentals. The CEO consolidated in a highly fragmented industry by buying many companies. From 2014-2018, shares quadrupled. Then, the stock stumbled until last December 2020 when XPO did the spin-off. XPO kept the freight transportation and truck brokerage business, while spinning off the lucrative contract logistics division to make it the second-largest company in this space globally. Which one to buy? The XPO spun-off has given XPO a 73% gain since Jan. 2020. GXO has already surged from $57-79 after only a few weeks. People want a logistics stock, important to the new e-commerce economy. He likes both. XPO has more upside. GXO's warehouses give great exposure to e-commerce and logistics outsourcing, powerful long-term trends. GXO could be lowballing its forecasts and faces little competition in this space. There's still room to run here, too.

BUY

A good company in logistics. He used to own it and sold it at a healthy profit. Wish he still owned it.

BUY

The CEO sold some shares, which was prudent, but the stock went down. The company is doing very well.

TOP PICK

A trucking and warehouse logistics company. Did very well during the pandemic. Enabled home delivery of many types of good, as well as logistics for other companies. It makes companies and trucking more efficient. They are splitting into two companies, one for trucking and one for warehouse logistics, that will unlock value. (Analysts’ price target is $155.43)

BUY

Despite the non-stop boom in e-commerce, they lost their mojo in recent years. So last December, XPO spun off their faster-growing logistics business. It was a smart move, and the stock rallied 56% since then. The spin-off will be called GXO Logistics. After today's close, XPO reported a strong top and bottom line beat.

BUY

The CEO is a genius. Their last quarter was terrific.

BUY

It's a transportation roll-up that spent years consolidating the trucking industry in the US. Managing was exploring selling off some of its businesses until Covid hit. They just announced they're spinning off their entire logistics division, entering a freight transportation business, plus a non-asset truck brokerage that would make it the second-largest logistics outfit in the world. He loves companies that break themselves up to unlock value.

DON'T BUY

It has trucks and does a lot of software and logistics. He likes their software. He used to own the stock. They had acquisitions that did not come through as they thought they would. He was not going to go back into it.

DON'T BUY

In the last little while it has had a tough go. It has beaten only 6% of stocks on the S&P over the last year. He likes the transports but the rails more. You could buy IYT-N and that would be a better bet.

BUY

It's in a good spot if you don't own it. It's showing new strength, returning to past levels of strength. If you're new to this, buy.

DON'T BUY

In current global trade tensions, all logistics companies have sold off. But long-term, they are good investments; they act as proxies for the underlying economy. They reflect movement of goods, so a good space long-term. He's not too current on XPO though. It's a capital-intensive business, with good and bad periods to own. It has sold off recently. Look elsewhere like AT&T.

SELL

It has exceeded by about 30% its fair market value. It has pushed beyond its intrinsic value. It could go higher to $118-$120 but he does not think it will grow any further than that. Since 2016 the trajectory of earnings has been slow and steady.

TOP PICK

Transports are outperforming the market--a good sign. XPO does logistics, fullfilment, getting products from the plant to the customer. This is a tech company with 1,700 coders creating tech solutions. Organic revenue growth with smart acquisitins. Sufferered only a little pullback in the recent correction. Use a $95 stop loss. A strong performer in the transport space. (Analysts' price target $107.56)

COMMENT

The last time this peaked, it was at the equivalent P/B of about $71, and that would remain as his upside potential. It has overrun its FMV of about $55. It is getting on the expensive end of the spectrum.

COMMENT

Trucking. He likes it. They have a fantastic growth rate. Trucking has had some core fundamental positives. There is nothing wrong with this.

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XPO Logistics, Inc (XPO)