XPO Logistics is an American transportation and logistics company. It is a top-ten global logistics provider of cutting-edge supply chain solutions and does business in 30 countries. It has 50,000 customers, including 69 of the Fortune 100 companies. If you are looking to buy logistics stocks, then XPO is certainly a possible candidate to consider.

XPO does business in 4 major segments, North American Less-than-truckload (LTL), North American transportation, European transportation, and North American and European Contract Logistics. XPO is one of the largest players in each of these 4 segments. Additionally, the company also happens to be the largest manager of expedited shipments in North America, the largest last-mile logistics provider in North America for heavy goods, and the largest LTL provider in Western Europe. The company’s scale and presence make it one of the transportation stocks to buy now.

XPO recently reported its Q22020 earnings at the end of July 2020. The results may hint that XPO is not one of the best transportation stocks to buy. Revenues fell 17% year-on-year to $3.5 billion from $4.24 billion in Q22019. Loss per share of $0.63 was reported during the quarter as compared to net earnings per share of $1.28 in the same quarter the previous year. The pandemic took a toll on the global economy as the pounds per day shipment number declined from 76.52 million to 61.99 million. As a result, XPO’s LTL segment revenue declined by 20.7%.

However, XPO Logistics CEO Bradley Jacobs painted an optimistic outlook. He said, “For us, the trough was in April in both North America and Europe. Since then, we’ve seen a recovery in Europe with a more recent rebound in North America, and all of our sites are open. Each month in the quarter showed sequential improvement across our operating regions.”

The growth of the e-commerce sector along with a rebound in the economy is expected to be the driver for XPO and position it as one of the logistics stocks to buy.