GXO - Is Hub Group Stock A Buy Despite The Freight Recession?
2024-05-17 17:27:31 ET
Summary
- Hub Group, Inc.'s Q1 2024 earnings show a freight recession with declining revenues and operating income margin.
- The company is focused on managing costs and shifting truck loads to intermodal to improve business performance.
- Despite the current challenges, there is a compelling investment case for Hub Group, with potential upside in 2025 and beyond.
Airlines play an important part in logistics, and that is one of the reasons why I am expanding my coverage towards logistics. The other reasons for looking deeper into the logistics industry is due to aerospace supply chains and data leverage. Aerospace supply chains have become more complex over the past years and decades, and with higher production rates envisioned, complex logistics issues require solutions from specialized logistics companies. GXO Logistics (GXO), which I covered last year , is an example of that. We are also seeing digitization trends in the industry that should drive a leaner business, and that is what we saw with C.H. Robinson Worldwide (CHRW)....
Is Hub Group Stock A Buy Despite The Freight Recession?