XPO, Inc.

XPO, Inc. is one of the largest providers of asset-based less-than-truckload (LTL) transportation in North America.

Following the spinoff of the contract logistics division (GXO) in 2021 as well as its freight brokerage operations (RXO) in 2022, XPO Logistics (NYSE: XPO) is moving closer to be the pure play asset-based less-than-truckload carrier.

As per our previous report on XPO as on October 26, 2022, a ‘Buy’ recommendation was given on the stock at $48.370, and noted below are the details of support and resistance provided in our previous report:

Recommendation Summary as on October 26, 2022 (prior to the spin-off)

Key Updates

XPO has announced that it has wrapped up the previously announced spin-off of RXO, Inc., which led to the creation of 2 independent as well as publicly traded companies. Now, RXO would begin “regular way” trading on NYSE under the symbol “RXO.”  

This separation was completed via a distribution to XPO stockholders of 1 share of RXO common stock for every 1 share of XPO common stock held as of the record date for the distribution (October 20, 2022). RXO shares were distributed at 12:01 a.m. (ET) on November 1, 2022. The distribution was intended to be tax-free to XPO stockholders. The opening stock price of RXO was $20.25 per share on November 1, 2022.

XPO’s Daily Chart

Source: REFINITIV; Analysis: Kalkine Group

Considering the current trading levels as well as risks associated, it is prudent to liquidate the stock at the current levels.

Hence, a ‘Sell’ rating has been provided on the stock at the closing price of $43.94 as of 2^nd February 2023. 

RXO, Inc.  

RXO, Inc. provides transportation solutions. It specializes in freight forwarding, truckload, and supply chain management, as well as offers data science, technology operations, and machine learning solutions.

As per our previous report on RXO as on 23 December 2022, a ‘Speculative Buy’ recommendation was given on the stock at $16.02, and noted below are the details of support and resistance provided in our previous report:

Recommendation Summary as on 23 December 2022 (post the spin-off)

Source: REFINITIV; Analysis: Kalkine Group 

Considering the current trading levels as well as risks associated, it is prudent to liquidate the stock at the current levels.

Since RXO Inc (NYSE: RXO) is trading separately, a ‘Sell’ rating has been provided on that stock as well at the closing price of $20.09 as of 2 February 2023. 

Note: This report may be updated with details around fundamental and technical analysis, price/ chart in due course, as appropriate.

Note 1: Past performance is neither an indicator nor a guarantee of future performance.

Note 2: The reference date for all price data, currency and technical indicators is February 2, 2023. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

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