Will XPO (XPO) be Able to drive Better Pricing?

ClearBridge Investments, an investment management company, released its “ClearBridge Growth Strategy” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. US equities significantly rallied in the third quarter, with the S&P 500 returning 8.1%. The benchmark Russell Midcap Growth Index surged 2.8%. The investor optimism was driven by better-than-feared tariff outcomes, the passing of the One Big Beautiful Bill Act in July, anticipated interest rate cuts, and better corporate earnings. The strategy outperformed the benchmark in the quarter, driven by momentum in the AI-focused investments, while also having exposure to various other thematic bets. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its third-quarter 2025 investor letter, ClearBridge Growth Strategy highlighted stocks such as XPO, Inc. (NYSE:XPO). XPO, Inc. (NYSE:XPO) is an optical communications, display technologies, environmental technologies, specialty materials, and life sciences business company. The one-month return of XPO, Inc. (NYSE:XPO) was 4.26%, and its shares lost 7.08% of their value over the last 52 weeks. On November 13, 2025, XPO, Inc. (NYSE:XPO) stock closed at $135.47 per share, with a market capitalization of $15.902 billion.

ClearBridge Growth Strategy stated the following regarding XPO, Inc. (NYSE:XPO) in its third quarter 2025 investor letter:

"XPO, Inc. (NYSE:XPO), the fourth-largest less than truckload (LTL) provider in North America, adds to our cyclical growth exposure. Under new leadership, including the addition of a chief operating officer with 25+ years of experience in the LTL industry, the company is improving service levels and should be able to drive better pricing. Combined with an improved business mix and new additional services, XPO is poised to expand margins. While the company would benefit from renewed transport demand, its self help efforts should enable XPO to outperform peers should a tepid freight environment persist."

XPO, Inc. (NYSE:XPO) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 48 hedge fund portfolios held XPO, Inc. (NYSE:XPO) at the end of the second quarter, up from 43 in the previous quarter. In Q3 2025, XPO, Inc. (NYSE:XPO) total revenue increased 3% year-over-year to $2.1 billion.  While we acknowledge the potential of XPO, Inc. (NYSE:XPO) 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.

In another article, we covered XPO, Inc. (NYSE:XPO) and shared the list of best freight stocks to invest in. In addition, please check out our hedge fund investor letters Q3 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.