GXO Logistics, Inc. (GXO): A Bull Case Theory

We came across a bullish thesis on GXO Logistics, Inc. on Make Money, Make Time’s Substack by Oliver | MMMT Wealth. In this article, we will summarize the bulls’ thesis on GXO. GXO Logistics, Inc.'s share was trading at $54.61 as of October 16th. GXO’s trailing and forward P/E were 105.49 and 17.36 respectively according to Yahoo Finance.

GXO Logistics (GXO) has established itself as one of the world’s largest pure-play contract logistics providers, offering complex supply chain solutions for multinational clients. The company operates warehouses and fulfillment centers powered by robotics, AI, and machine vision, making it an indirect play on the broader robotics wave. GXO’s key differentiation lies in its ability to integrate automation at scale, enabling clients to reduce costs, increase throughput, and build resilient supply chains.

This capability has helped the company secure multi-year contracts with blue-chip customers across e-commerce, retail, food & beverage, and aerospace. Beyond automation, GXO benefits from broader industry tailwinds as many companies increasingly shift from in-house logistics management to outsourced providers, particularly for complex supply chains.

From a valuation perspective, GXO trades at approximately 12x EBITDA, offering around 9% growth, which is comparable to slower-growth logistics peers like UPS. While the company may not exhibit the high growth profile sought by some investors, its niche positioning, recurring contracts, and cost-saving capabilities make it a stable option with upside potential, particularly as a defensive hold during periods of macroeconomic uncertainty.

Technically, GXO has traded in a tight $50 range since July, hovering just above its weekly 100 and 200 moving averages, signaling potential stability. Although lower lows and lower highs have emerged, a breakout from the current range could see the stock move toward $70, presenting further upside. Overall, GXO combines strategic exposure to automation, a robust client base, and attractive valuation, making it a compelling investment with a favorable risk/reward profile in the logistics and automation sector.

Previously we covered a bullish thesis on GXO Logistics, Inc. (GXO) by Busy Investor Stock Reports in February 2025, which highlighted the company’s strong revenue growth, AI-driven operational improvements, and multi-year contracts with blue-chip clients. The company's stock price has appreciated approximately by 39.13% since our coverage. This is because the thesis played out. Oliver | MMMT Wealth shares a similar thesis but emphasizes GXO’s robotics and automation capabilities.

GXO Logistics, Inc. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 49 hedge fund portfolios held GXO at the end of the second quarter which was 42 in the previous quarter. While we acknowledge the potential of GXO as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.