|Bid||94.30 x 800|
|Ask||94.50 x 1000|
|Day's Range||92.82 - 95.83|
|52 Week Range||45.73 - 96.20|
|Beta (5Y Monthly)||2.48|
|PE Ratio (TTM)||29.55|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||N/A|
Just nine years ago, XPO Logistics Inc. (NYSE: XPO) was a $150 million-a-year expeditor whose new owner, Brad Jacobs, had designs to dominate the freight brokerage sector. Now Jacobs and XPO have pivoted again. By exploring the sale of the entire company save its North American LTL business, Jacobs, the board and management have signaled that XPO's days of being what amounted to a transport and logistics conglomerate are over.
The Commerce Department reported the data on Thursday morning. If you take out that category, December’s retail sales growth looks even better—up 0.7% from the prior month, which is more than expected. The bank reported better-than-expected fourth-quarter earnings in the morning, and it saw growth across the board: The bank’s revenues climbed in each of its trading, investment banking, and wealth management businesses.
XPO Logistics is mulling the sale or spinoff of one or more business units, nearly a year after warning on Amazon.com
(Bloomberg Opinion) -- There’s no clearer sign we’ve reached peak breakup in industrials than a pure-play transportation and logistics company blaming a “conglomerate discount” for its decision to consider cleaving itself into smaller pieces.XPO Logistics Inc. confirmed late Wednesday that it was exploring strategic alternatives including the possible sale or spinoff of one or more of its units. The review could see businesses that generate as much as 75% of XPO’s revenue jettisoned, with the European, North American and Asia-Pacific supply-chain operations and its European and North American transportation arms all potentially on the block, people familiar with the matter told Bloomberg News. That would leave XPO with its North American short-haul trucking business. XPO CEO Brad Jacobs told Bloomberg TV he’s exploring breakup options because the company is suffering from a “conglomerate discount” and “Wall Street understands pure plays.”Those are in-vogue words right now for industrial CEOs after an unprecedented wave of breakups. But the majority of those splits involved businesses that had little or only tenuous connections to each other – think the separation of Ingersoll-Rand Plc’s golf cart, tools and pumps business from its HVAC division, or United Technologies Corp.’s breakup of its aviation, climate and elevator businesses. Even controversial breakups such as Honeywell International Inc.’s spinoff of its Resideo Technologies Inc. thermostat and Garrett Motion Inc. turbochargers businesses, or Fortive Corp.’s plan to carve out its legacy industrial products, involved divisions that clearly didn’t fit. XPO is splitting the hairs much more finely. According to its most recent annual filing, the company gets 65% of its revenue from transportation and 35% from logistics.All the same, the market clearly does love this move. The stock climbed more than 10% on the news, with some of that likely reflecting a squeeze on short sellers who have a 13.1% interest in shares outstanding, according to Markit. Citigroup Inc. analyst Christian Wetherbee estimated a breakup could add as much as $66 a share to XPO’s equity value. And that’s likely appealing for investors looking for a story to bet on amid generally elevated valuations elsewhere in industrial stocks. But it’s hard not to view this breakup plan as a waving of the white flag for a company that was built via consolidation but has struggled of late to get deals done. XPO hasn’t announced a major acquisition since 2015, despite Jacobs’s exclamation in 2017 that he was ready to spend up to $8 billion. Last year, XPO said it would pivot away from M&A and plow billions into share buybacks instead. That helped drive XPO shares to a 40% gain in 2019, despite a recession in freight markets.With its debt levels rising and little in the way of real earnings growth, keeping the party going presented a challenge. Jacobs laid out a plan in August to add as much as $1 billion of profit by 2022 via cost cuts and new business. Bloomberg Intelligence analyst Lee Klaskow, who noted at the time that such a push carried significant execution risk, says the breakup may be a sign that XPO had already squeezed all it could from the business as far as operating improvements and technology investments.The point of all of XPO’s M&A activity was to wring costs out of the combined operations and gain more negotiating clout with suppliers. Jacobs told Bloomberg TV that XPO’s combination of businesses had helped it add more than $2 billion of revenue organically. “We actually will lose some bargaining power as smaller companies with vendors because we won’t have the global procurement capability,” Jacobs said. But he thinks smaller, more agile businesses will be more appealing to both customers and shareholders.When a CEO is talking out of two sides of his mouth, it sure sounds like financial engineering.To contact the author of this story: Brooke Sutherland at firstname.lastname@example.orgTo contact the editor responsible for this story: Beth Williams at email@example.comThis column does not necessarily reflect the opinion of Bloomberg LP and its owners.Brooke Sutherland is a Bloomberg Opinion columnist covering deals and industrial companies. She previously wrote an M&A column for Bloomberg News.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg) -- XPO Logistics Inc. jumped the most in five months after the trucking and warehouse operator said it’s considering the possible sale or spinoff of four of its business units.The company plans to keep its U.S.-based short-haul trucking operations and put up for sale two units in North America and two in Europe. It’s hired Goldman Sachs Group Inc. and JPMorgan Chase & Co. to explore possible transactions.“We’re going to be a pure play. Wall Street understands pure play,” Chief Executive Officer Brad Jacobs said in a Bloomberg TV interview Thursday. “We’ll have no net debt and we’ll have billions of dollars of cash in a publicly traded entity.”Jacobs is frustrated by his company’s valuation, which has been trading at about 8 to 9 times earnings before interest, taxes, depreciation and amortization. That trails competitor Old Dominion Freight Line Inc., which trades at 13 times.The “conglomerate discount” the market has put on XPO has persisted even as the company increased revenue by $2 billion and Ebitda by $500 million in the last four years without acquisitions.Shares rose 13% to $93.57 in New York at 10:15 a.m., the biggest intraday increase since August 2. Last year, XPO rose 40% while the Standard & Poor’s 500 Index increased 29%.No GuaranteeJacobs said it’s not guaranteed that the business will be sold.“Right now is a good time,” he said. “The credit markets are good. M&A market is good. We’ll run the processes, and if we get attractive prices, we’ll sell them.”XPO itself is a rollup. It’s announced 19 deals worth $7.5 billion since Jacobs took over the company in 2011, when it was called Express-1 Expedited Solutions. Its shares have gained 584% since Jacobs took the reins.Jacobs is a zealous dealmaker who has done more than 500 acquisitions, building four companies before XPO. That included construction equipment renter United Rentals Inc. and trash collector United Waste Systems Inc., which is now owned by Waste Management Inc.To contact the reporters on this story: Thomas Black in Dallas at firstname.lastname@example.org;Ed Hammond in New York at email@example.comTo contact the editors responsible for this story: Brendan Case at firstname.lastname@example.org, Susan Warren, Richard CloughFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
The end of XPO Logistics, Inc. (NYSE: XPO) as the transport and logistics industries have come to know it may be at hand. The $17 billion giant has begun entertaining possible acquisition offers for four of its units: its two North American and two European transport and logistics businesses. Failing to execute a sale or sales that XPO finds satisfactory, the company may spin off one, two or all four of the units.
Bradley Jacobs has been the CEO of XPO Logistics, Inc. (NYSE:XPO) since 2011. First, this article will compare CEO...
Stock futures suggest Wall Street will push higher into record territory after the U.S. and China sign preliminary trade pact; Morgan Stanley and Charles Schwab report earnings; Apple buys an AI startup; XPO Logistics exploring alternatives for its business units.
XPO Logistics Inc. shares rallied in the extended session Wednesday after the logistics company said it might sell off one or more of its business units. XPO shares surged 15% after hours, following a 1.5% rise to close the regular session at $82.82. The company said its board authorized a review of strategic alternatives "including the possible sale or spin-off of one or more of XPO's business units" but excluding its "North American less-than-truckload unit." XPO retained Goldman Sachs and J.P. Morgan as its financial advisers. "We continue to trade at well below the sum of our parts and at a significant discount to our pure-play peers," said Bradley Jacobs, XPO chairman and chief executive, in a statement. "That's why we believe the best way to continue to maximize shareholder value is to explore our options, while remaining intensely committed to the satisfaction of our customers and employees."
Shares of XPO Logistics, Inc. surged in after-hours trading Wednesday after the company said it is exploring the sale or spin-off of one or more of its business units. Bradley Jacobs, chairman and chief executive officer of XPO, said in a statement that "we continue to trade at well below the sum of our parts and at a significant discount to our pure-play peers," in spite of strong share performance over the past decade. XPO retained Goldman Sachs & Co. LLC and J.P. Morgan Securities LLC as its financial advisors and Wachtell, Lipton, Rosen & Katz as its legal advisor to assist with the review process, the statement said.
XPO Logistics is technically a transportation company. But XPO Logistics CEO Brad Jacobs puts technology first, and urges you to, too.
XPO Logistics Inc. (NYSE: XPO) Chairman and CEO Brad Jacobs has said the protracted decline in U.S. industrial production, which has shrunk the revenue streams of every less-than-truckload (LTL) carrier, will leave three types of LTL firms in its wake: the laggards that aren't able to counteract the revenue hits; middle-pack companies that will muddle through with difficulty; and the leaders with technological advancements that will make their operations more efficient and more valuable to their partners. Jacobs and his longtime CIO, Mario Harik, contend that the investments will provide shippers with more cost-effective services, strengthen the company's operating network and push out benefits to truckers and drivers who've never had an abundance of them. When industrial demand rebounds, XPO will be well positioned on multiple fronts to capture outsized market share of the LTL ecosystem, Jacobs and Harik reckon.
The transports are a core group of stocks that are a good barometer of the economy, and thus, of the stock market.Even Charles Dow -- the founder of the Dow Jones Industrial (and Transports) Average, founder of the Wall Street Journal and inspiration for Dow Theory -- saw how important their relationship to the market was.The simple concept is this: When goods are in demand, transports rise because they are delivering more goods from suppliers and manufacturers down to the marketplace.InvestorPlace - Stock Market News, Stock Advice & Trading TipsWhen industry needs goods to produce more stuff, transports are busy shipping the stuff to industry and then delivering it to consumers. When that relationship is off -- industrial demand slacks off, or shipping demand on one or more legs drops off -- there's a disconnect and some part of the economy is in trouble.But we're currently in a place where global logistics companies, shippers, you name it, are finally getting back in action. And some have been beaten down while the trade war has dragged on. As the senior analyst of one of the world's leading financial think tanks, I actively seek out beaten-down stocks with potential. The most important component of any new or troubled business is to find strong fundamental drivers. Looking at catalysts has helped me identify opportunities such as Apple (NASDAQ:AAPL) when it traded for 56 cents. If you employ this strategy, it will change your life for the better. * 7 Stocks to Buy to Get 2020 Started the Right Way To get you started, I've looked at six transportation stocks, all of which are A-rated Portfolio Grader stocks ready for the good times ahead. Transportation Stocks: Saia (SAIA)Saia (NASDAQ:SAIA) is a trucking company that started in Cajun country Louisiana in 1924. It specialized in trucking between Texas and Louisiana until 1980, when it expanded operations.Now the company offers a variety of logistics and trucking services around North America.The stock has been on the move since mid-year, and is currently up 65% for the full year. Much of this sector has been hot this year because there has been a shake-up at the top of the sector as Amazon (NASDAQ:AMZN) has been reorganizing its logistics arrangements with FedEx (NYSE:FDX) and others. This has given companies like SAIA more opportunities to grab business.Plus, a good economy in Texas energy markets and the end of the trade war with China will also help, since SAIA works two major ports - New Orleans and Houston.And even with its big gains, the stock is still trading at a trailing price-to-earnings ratio of 21, which means there's still time to get in. Werner Enterprises (WERN)Source: Shutterstock Werner Enterprises (NASDAQ:WERN) is one of those trucking companies that if you travel interstates much, you have likely seen their trucks. They've been in business since 1956 and specialize in medium- and long-haul trucking as well as logistics services for truck brokerages.They also specialize in deliveries of non-durable products -- cosmetics, foods, fuel, etc -- by the truckload.It's more important than ever to invest your money in stocks that can weather a potential storm. What you need to bear in mind here is that WERN doesn't really live in the same world as consumer-facing companies like FDX, which aren't doing well. They are moving products from wholesalers to retailers, or factories to wholesalers or distribution centers. That's a different business. * 7 Safe Dividend Stocks for Investors to Buy Right Now And that's why WERN has managed to deliver a solid return this year and still remain a bargain. This year should be a good one, but WERN is a solid company that keeps on rolling year after year. Grupo Aeroportuario del Pacifico SAB (PAC)Grupo Aeroportuario del Pacifico SAB (NYSE:PAC) is a Mexico-based companies that operates airports in large Mexican cities as well as airports in Jamaica.This is not only about rising tourism traffic as economies expand, but also increased business traffic in the import/export markets as well as ramping manufacturing facilities, now that the USMCA has passed the president has signed it.The market hates uncertainty, and this this part of the market was feeling the pressure of a global slowdown and tensions between Mexico and the U.S., as well as the broader trade agreements.Now, one of the big pieces of uncertainty has lifted. And growth looks solid moving forward, on both sides of the border.Plus, PAC is a small mid-cap company with a $6.8 billion market cap, so that means growth is more leveraged than it is with a larger firm. The stock is up 48% this year and is still delivering an inflation-beating 3.2% dividend. XPO Logistics (XPO)Source: Shutterstock XPO Logistics (NYSE:XPO) has had quite a ride -- in both directions -- thanks to its business with Amazon.From January 2017 to fall 2018, the stock was up 160%. That's pretty impressive for a $7 billion market cap trucking and logistics company. But that was because it landed a massive client that was using its last mile warehousing and logistics for its expanding e-commerce platform.But then that partner cut its business by two-thirds. Now XPO was expanding its operations and beefing up capabilities to keep AMZN business and grow it. When the cut came, like AMZN's recent break with FDX, it was a heavy blow.By January 2019, the price of the stock was cut in more than half from its recent highs. * 5 Great Stocks for 2020 But it's now coming back. The stock is up 42% in 2019, and its trailing P/E is around 25. That kind of resiliency will serve it well in this dynamic market. While the bull market is from from over, there are bumps ahead. To prepare for a potential storm, investors should buy stocks -- like XPO -- that have shown resiliency. Kansas City Southern (KSU)Kansas City Southern (NYSE:KSU) is a freight rail company that has operated in 10 central and southeastern states -- Illinois, Missouri, Kansas, Oklahoma, Arkansas, Tennessee, Alabama, Mississippi, Louisiana and Texas.This service area comprises most of the American heartland, and there's lots of products that are now moving a bit better with the phase one trade agreement almost signed.This should be a big boost in business, whether in agriculture products or energy. More economic growth requires more energy, and that has to be shipped.This is a $16 billion market cap company and it's up 61% in the past year. That's more like a tech firm than a rail company that has been operating since 1887. Canadian Pacific Railway (CP)Source: Shutterstock Canadian Pacific Railway (NYSE: CP) has been around since 1881, and operates from its headquarters in Calagary, western Canada.The Western provinces are the most economically productive in the country, and the Pacific Coast is an especially important hub for trade with Asia.There was a large influx of Chinese into the country over the past decade and that has furthered cemented trade relations between the two countries.CP is an intermodal carrier, which means it picks up containers and trailers at ports and then transfers them to rail cars for delivery to distribution points across its territory.It also runs a lot of the energy products that are produced in Calgary and other western regions. Both these businesses should be picking up as the global economy starts to improve. * 7 International Stocks Worth a Visit This is a major player in the Canadian economy and has a $35 billion market cap. The stock is up 45% this year and next year is looking promising.The most fundamental shift happening right now, however, is in advanced technologies such as autonomous vehicles. But it's not the car companies themselves you should be buying … but the companies that make this future a possibility. I'm taking about the "master key" companies. These are the firms that make "the brain" which powers self-driving cars. There are also "master key" companies in advanced medical diagnosis and the Internet of Things (IoT). To see how you can get in on the ground floor of these amazing breakthroughs, read my special report here.Louis Navellier had an unconventional start, as a grad student who accidentally built a market-beating stock system -- with returns rivaling even Warren Buffett. In his latest feat, Louis discovered the "Master Key" to profiting from the biggest tech revolution of this (or any) generation. Louis Navellier may hold some of the aforementioned securities in one or more of his newsletters. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Stocks to Buy to Get 2020 Started the Right Way * 10 Best ETFs for 2020: The Competition Is Stacked Full of Potential * 4 Gold Stocks to Buy as the Yellow Metal Surges The post 6 Transportation Stocks That Are Going Places appeared first on InvestorPlace.
On Dec. 13, 2018, short-selling firm Spruce Point Capital Management LLC took XPO Logistics Inc. (NYSE: XPO) to the woodshed in one of the harshest attacks ever directed at a publicly traded transportation and logistics company. XPO, Spruce Point wrote in a 69-page report, relies on asset sales, external financing and factoring receivables just to survive. What's more, XPO Chairman and CEO Brad Jacobs had surrounded himself with a "web" of longtime associates who had been convicted of illegal acts in the past, the report charged.
We can judge whether XPO Logistics Inc (NYSE:XPO) is a good investment right now by following the lead of some of the best investors in the world and piggybacking their ideas. There's no better way to get these firms' immense resources and analytical capabilities working for us than to follow their lead into their best […]
Southern California port and rail drivers, along with union and labor advocates, pushed back against industry critics of a sweeping new labor law that seeks to limit the use of independent contractors. Last week the California Trucking Association (CTA) filed a legal challenge against the bill, AB5, saying it will result in 70,000 drivers in the state losing their ability to work and that the state-level legislation defies federal law. A Teamsters executive fired back with a statement citing exploitative working conditions at the San Pedro ports, where around 12,000 rail and port drivers haul containers short distances to warehouses and rail yards.
Many investors are still learning about the various metrics that can be useful when analysing a stock. This article is...
Redwood Logistics has launched a consulting practice focused on transportation management systems (TMS) and related technology integration. The introduction of Redwood Platform Services enhances the company's integration support for all of its main service categories, including third-party logistics, TMS integration and digital freight brokerage offerings, the Chicago-based company said. Redwood Platform Services was announced in conjunction with the company's pre-release of its newest software, RedwoodConnect 2.0, a supply-chain integration platform that simplifies and streamlines the integration process.
XPO Logistics Inc Chief Executive Bradley Jacobs on Tuesday said U.S. consumer spending was still strong and continued to offset an industrial sector transportation "recession" spawned by President Donald Trump's trade war with China. U.S. manufacturing activity tumbled to a more than 10-year low in September, hurt by the Washington-Beijing tariff battle that Trump started early last year. The comments from the transportation and warehousing CEO echo those from truck and railroad executives, who are reporting shipping volume declines from big manufacturers and other industrial companies.
On October 24, Amazon.com, Inc. (NYSE: AMZN) reported its financial results for the third quarter, which included a revenue beat and an earnings miss, the company's first in two years. The e-commerce giant's massive investments in transforming its two-day Prime network to one-day delivery were to blame, and in the earnings release, chief executive officer Jeff Bezos called out and explained Amazon's commitment to one-day delivery. "We are ramping up to make our 25th holiday season the best ever for Prime customers – with millions of products available for free one-day delivery," Bezos said in a statement.
XPO Logistics CEO Bradley Jacobs joins Yahoo Finance’s Alexis Christoforous and Brian Sozzi on The First Trade to discuss the growth of his company in 2020.