What Happened?
Shares of contract logistics company GXO (NYSE: GXO) fell 2.6% in the afternoon session after a broad market sell-off driven by concerns over U.S. tariffs, rising bond yields, and signs of a slowdown in the logistics sector.
The wider market tumbled after a court decision raised uncertainty about U.S. tariffs, while rising Treasury yields added to the pressure on stocks. Further weighing on investor sentiment, the ISM Manufacturing report showed that manufacturing activity contracted for a sixth straight month. The logistics sector faced specific challenges, with reports of subdued summer trade volumes and weak airfreight rates.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy GXO Logistics? Access our full analysis report here, it’s free.
What Is The Market Telling Us
GXO Logistics’s shares are somewhat volatile and have had 13 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The biggest move we wrote about over the last year was 7 months ago when the stock dropped 15.8% on the news that the company reported weak fourth quarter results. Its full-year EPS and EBITDA guidance fell short of Wall Street's estimates. In addition, while GXO Logistics narrowly topped analysts' revenue expectations this quarter, its organic revenue missed. Overall, this was a weaker quarter.
GXO Logistics is up 19.4% since the beginning of the year, but at $51.43 per share, it is still trading 18.4% below its 52-week high of $63.01 from October 2024. Investors who bought $1,000 worth of GXO Logistics’s shares at the IPO in July 2021 would now be looking at an investment worth $943.67.
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