XPO logistics is winning a victory by changing the logistic game
XPO Logistics is winning a victory by changing the logistic game
XPO logistics take the trophy home for the top pick transportation and logistics service provider for the year 2017. It has grown 111% in 2017 and the numbers has already by 18% in YTD 2018.
Can more profit be generated regarding logistic at the stock price of recent 108%?
E-commerce is full of hustle bustle and so much is happening there. When Bradley Jacobs took up the job of CEO and Chairman of XPO in 2011 he has perfectly handled everything including the acquisition of companies, geographical expansions and investment in R&D for new technologies. XPO received a much deserved reward in the form of share price appreciation from his investors in 2017.
XPO’s latest investor presentation reveals that the net worth of e-commerce market is $13 billion. XPO’s has a huge market demand with its net market share of 7% and it is spending in research and development of technologies works that can act as a growth catalyst for investors in the long run. It is also and finding new way on how the heavy good delivery system. Bradely Jacob has expert knowledge on companies to get hold of and how to incorporate them with the current business.
Considering all these factors it can be said that the share can cause an increase of 20% to 22% in the next 12 or 18 months for XPO. Further discussing the investment thesis in detail,
A growing e-commerce market of $13 billion that is unstoppable
As we already know that out of the total 185.7 million heavy good home deliveries XPO logistics has a contribution of 7% of the deliveries in the U.S in the years 2017.With a total of 61 miles hubs XPO is at the top in the U.S heavy good delivery business with an anticipation of an increase to 85 hubs before the year ends. This increase will help XPO to serve almost 95.0% of the U.S population. It has completely revolutionized the transportation and logistics industry with its introduction of new technology dynamics. It has created a healthy customer interaction system, especially for its last mile delivery. By collaborating with companies like Amazon and Google, XPO is letting its customers track their deliveries through voice control assistants and with the help of web-based tracking tools.