XPO plans to add to your 77% return

Article Excerpt

Shipping specialist XPO Logistics has handed investors a whopping 77% gain in the past 12 months. It’s now looking to sell or spin off some of its businesses to further spur your returns. A tighter focus on its core operations would help unlock value for its investors and could also make the remaining firm an attractive takeover target. Indeed, our Takeover Target Rating system assesses the chances of a lucrative takeover offer for XPO investors as “Highest.” XPO LOGISTICS INC. $97 is a spinoff buy. The company (New York symbol XPO; Manufacturing sector; Shares outstanding: 92.4 million; Market cap: $9.0 billion; No dividends paid; Takeover Target Rating: Highest; www.xpo.com) is a major global provider of supply-chain services to over 50,000 businesses worldwide. The company generates value for investors through its two divisions: Transportation (64% of XPO’s 2019 revenue) offers freight brokerage, last-mile logistics for heavy goods, less-than-truckload services, and intermodal operations. Its global fleet includes 15,500 tractors and 39,500 trailers. Logistics (36%) provides contract, warehousing, distribution and inventory management. XPO tends…