GXO - 3 Reasons to Buy GXO Logistics Stock Now
2024-05-11 08:36:00 ET
Nearly three years ago, GXO Logistics (NYSE: GXO) was spun off from XPO , the transportation and logistics company that had been one of the best-performing stocks of the previous decade.
The logic for the move was straightforward. XPO had become too complex to be valued appropriately, and then-CEO Brad Jacobs argued that the stock was undervalued due to a conglomerate discount.
Spinning off GXO would allow each company to allocate capital, pay employees, and make acquisitions that were in keeping with its strategic goals, and be rewarded by the stock market accordingly. It also formed GXO as the world's largest pure-play contract logistics company, allowing it to pursue acquisitions and consolidate its leadership in a large and fragmented industry.
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3 Reasons to Buy GXO Logistics Stock Now