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.

XPO Logistics, Inc. (XPO)

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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. E-commerce and global economic growth are both demand drivers for logistics and the runway for the company is quite long.

The rise in the logistics sector over the past decade manifests itself quite clearly in the long-term uptrend that XPO has been in for the majority of past decade. The stock has generally respected the long-term trend line, shown in yellow. In February and March of 2020, the stock fell 46% from a high of almost 90.

In April, the stock bounced up from an important area consisting of the bottom of the long-term trend as well as a historic support-resistance level at around 49 denoted with blue line. Since then, the stock has moved up almost 40%. The next likely target is the most recent resistance level at 99 and then the top of the long-term trend at 129. Stop loss can be placed below the 49-support level.

Positions taken at $68.40 with stop loss 36% below at $43.52. Short term traders could take profit at $110 giving a profit of 61%