Why Freight Operator XPO Shares Are Diving Premarket Thursday
Portfolio Pulse from Lekha Gupta
XPO, Inc. shares are down premarket due to a reported 4.6% decline in LTL tonnage per day for August 2024 compared to August 2023. Despite this, the company remains optimistic about margin expansion and yield growth. Investors can also gain exposure through ETFs like SUPL and AWEG.
September 05, 2024 | 9:53 am
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NEGATIVE IMPACT
The Alger ETF Trust Alger Weatherbie Enduring Growth ETF (AWEG) includes XPO, which is facing a short-term stock price decline due to a drop in LTL tonnage. This may affect AWEG's short-term performance.
AWEG holds XPO, which is experiencing a decline in stock price. This could negatively impact AWEG's performance in the short term.
CONFIDENCE 85
IMPORTANCE 60
RELEVANCE 50
NEGATIVE IMPACT
ProShares Trust ProShares Supply Chain Logistics ETF (SUPL) offers exposure to XPO, which is experiencing a short-term decline in stock price due to a drop in LTL tonnage. This may impact SUPL's performance in the short term.
SUPL holds XPO, which is experiencing a decline in stock price. This could negatively impact SUPL's performance in the short term.
CONFIDENCE 85
IMPORTANCE 60
RELEVANCE 50
NEGATIVE IMPACT
XPO shares are down 8.42% premarket due to a 4.6% decline in LTL tonnage per day for August 2024 compared to August 2023. The company cites a decrease in daily shipments and weight per shipment as reasons. Despite this, XPO is optimistic about margin expansion and yield growth.
The decline in LTL tonnage per day is a significant factor affecting XPO's stock price negatively in the short term. However, the company's optimism about margin expansion and yield growth may mitigate long-term concerns.
CONFIDENCE 95
IMPORTANCE 90
RELEVANCE 100