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What Makes XPO (XPO) a Long-Term Investment?

What Makes XPO (XPO) a Long-Term Investment?

ClearBridge Investments, an investment management company, has released its investor letter “ClearBridge Large Cap Value Strategy” for the third quarter of 2024. A copy of the letter can be downloaded here. In the third quarter, US stocks posted significant gains, recovering from fears of a slowdown in economic growth that had pushed several asset markets into correction territory. A broad recovery was then triggered by a 50 basis point rate cut by the Federal Reserve. The Russell 1000 Value Index gained 9.43% for the quarter. Against this backdrop, the ClearBridge Large Cap Value Strategy underperformed the benchmark Russell 1000 Value Index in the quarter. Additionally, you can check out the fund’s top 5 holdings to determine the best picks for 2024.

ClearBridge Large Cap Value Strategy highlighted stocks like XPO, Inc. (NYSE:XPO) in its third quarter 2024 investor letter. XPO, Inc. (NYSE:XPO) provides freight transportation services operating in the North American LTL and European transportation segments. XPO, Inc. (NYSE:XPO)’s one-month return was 5.65%, and its shares have gained 52.79% of their value over the past 52 weeks. On October 11, 2024, XPO, Inc. (NYSE:XPO) stock closed at $115.54 per share with a market cap of $13.448 billion.

ClearBridge Large Cap Value Strategy stated the following about XPO, Inc. (NYSE:XPO) in its third quarter 2024 investor letter:

“When it comes to transport, we have maintained our preference for less-than-truckload (LTL) providers XPO, Inc. (NYSE:XPO), which we added to during the period. We funded the XPO expansion initially by reducing and ultimately exiting United Parcel Service. Despite UPS’s undemanding valuation, we believe a healthier industry structure and better pricing dynamics make XPO a better longer-term investment.”

A convoy of trucks on a highway reflecting industrial freight traffic.

XPO, Inc. (NYSE:XPO) is not on our list of the 31 most popular stocks among hedge funds. According to our database, there were 37 hedge fund portfolios owned by XPO, Inc. (NYSE:XPO) at the end of the second quarter, up from 47 in the previous quarter. XPO, Inc. (NYSE:XPO) revenue increased in the second quarter of 2024 up 9% year over year to $2.1 billion. Although we’ve seen the potential of cheapest AI stock.

In another article, we discussed XPO, Inc. (NYSE:XPO) and featured Oppenheimer’s favorite stocks for the next 12 months and top stock picks. ClearBridge Large Cap Value Strategy also increased its holdings in XPO, Inc. (NYSE:XPO) in the second quarter of 2024. You can also find additional investor letters from hedge funds and other leading investors on our Q3 2024 Hedge Fund Investor Letters page.

READ MORE: Michael Burry is selling these shares And A new dawn is dawning for US stocks.

Disclosure: None. This article was originally published on Insider Monkey.