Why Shares of XPO Logistics Were Down Today
Shares of XPO Logistics (NYSE: XPO) plunged 25% on Wednesday, and are now off 52% in the last month, as the market braces for a possible U.S. recession. XPO is sure to take a hit from COVID-19 pandemic, and has some nonvirus issues on its plate as well. But this sell-off still feels overdone to me.
XPO Logistics and other transports have been hit hard by the spread of the novel coronavirus, which has brought global economic activity almost to a halt and lowered shipping volumes. But today's sell-off stands out because XPO shares were down on a day when rivals including C.H. Robinson Worldwide (NASDAQ: CHRW), FedEx (NYSE: FDX) and United Parcel Service (NYSE: UPS) were all up.
XPO could actually see a benefit from the pandemic assuming European and U.S. demand for e-commerce related logistics, particularly foods and consumer staples, heats up as people are asked to stay at home.
Source Fool.com
