XPO Stock Surges 39% Amid Manufacturing Optimism
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 06 2026
0mins
Should l Buy XPO?
Source: Fool
- Strong Revenue Growth: XPO's fourth-quarter revenue rose 5% to $2.01 billion, exceeding estimates of $1.95 billion, primarily driven by a 5.2% increase in yield, despite a 4.5% decline in daily tonnage, demonstrating the company's ability to maintain profitability in challenging conditions.
- Key Metrics Improvement: The company achieved significant improvements in key service metrics such as damage ratio and on-time delivery rate, enabling price increases, with an adjusted operating ratio in North America improving by 180 basis points to 84.4%, equating to a 15.6% operating margin, thereby enhancing its competitive position.
- Manufacturing Recovery Signals: The ISM report indicated that U.S. manufacturing activity expanded in January for the first time in over two years, with a reading of 52.6%, which is crucial for XPO as approximately two-thirds of its shipments are industrial goods, suggesting potential demand recovery ahead.
- Investment and Expansion: XPO has added 25 service centers, 19,000 trailers, and 6,000 tractors since 2022, and despite the current tough economic environment, the company is actively expanding into new premium services, which is expected to further enhance market share and free cash flow.
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Analyst Views on XPO
Wall Street analysts forecast XPO stock price to fall
19 Analyst Rating
15 Buy
3 Hold
1 Sell
Moderate Buy
Current: 189.810
Low
90.00
Averages
155.22
High
171.00
Current: 189.810
Low
90.00
Averages
155.22
High
171.00
About XPO
XPO, Inc. is a provider of freight transportation services. The Company moves goods through its customers supply chains in North America and Europe. It operates through two segments: North American Less-Than-Truckload (LTL), and European Transportation. The North American LTL segment provides shippers with geographic density and day-definite domestic and cross-border services to the United States (U.S.), as well as Mexico, Canada, and the Caribbean. It also includes trailer manufacturing operations. The European Transportation segment offers a range of services, such as truckload, LTL, truck brokerage, managed transportation, last mile, freight forwarding and multimodal solutions, including road-rail and road-short sea combinations. It serves a base of customers in consumer, trade, and industrial markets. The Company offers XPO Smart, its proprietary suite of intelligent tools and analytics that self-adjusts site by site to drive productivity across LTL service center operations.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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