Quick Win Money Stock Prediction by the Algorithm: XPO Logistics: Tech-Focus And Supportive Environment Bear Fruit

Quick Win by the Algorithm

On June 21 2016, the I Know First algorithm issued a bullish forecast for XPO Logistics, Inc. (NYSE: XPO), with a signal of 410.98 and a predictability of 0.6. In accordance with the forecast, the company’s stock price rocketed by 123.54% in 1 year.

Money Stock

XPO Logistics provides transportation and logistics services in North America and Western Europe, covering more than 50,000 customers in 34 countries. The company is currently the second largest freight brokerage firm in North America,and the second largest LTL provider.


XPO surged from roughly $27 on June 21, 2016 to $63 on June 21, 2017, indicating a return of over 120% over the 1-year holding period. Tailwinds from logistics growth and the company’s focus on e-commerce platform together beard fruit.

Less-than-truckload (LTL) business provides great margin improvement opportunities. XPO reported an impressive outcome of cost saving–LTL business told a story of 2% margin improvement. The management realized 10% potential upside in total. XPO has delivered $175 million in cost savings from the LTL business for the last 18 month, landing on the $170-210 million target range. Management addressed their plan of another $160 million of cost savings by 2018.

The company focuses on e-commerce platform. Over the last five years, U.S. e-commerce sales saw a mid double-digit CAGR. According to Deutsche Bank Markets Research, e-commerce is promising for a 75% revenue growth by 2020. With its focus on e-commerce platform, XPO is at the front-line of this surge. Also, the company has announced in May to double its existing capacity of market delivery center in Chicago, bettering its last mile delivery service, as a response to the fast-growing e-commerce industry.

Amazon may provide an interesting opportunity to XPO. Media outlets (WSJ) reported that Amazon was planning to build four new fulfillment centers. With its leading position in the industry, XPO appears well positioned to handle this new business. This partnership can potentially provide traction to XPO’s organic growth.

CEO announced in May that XPO has signed “the largest contract in our company’s history”. Even though refused to release names of the customers, CEO of XPO announced on May 4, 2017, that they have signed two big deals in the first quarter, one in intermodal rail and the other in reverse logistics, which would combine to drive the business up by 67% YoY. 

Again, I Know First Algorithm showed great ability in forecasting market movement.

This bullish forecast on XPO was sent to current I Know First subscribers on June 21, 2016. 

Before making any trading decisions, consult the latest forecast as the algorithm updates predictions daily. You can use the algorithm for intra-day trading. The predictability tends to become stronger with forecasts over longer time-horizons such as the 1-month, 3-month and 1-year forecasts.