XPO Is Bucking the Industry Headwinds. Can the Trucking Stock Keep Beating the Market?

It's no secret that transportation stocks are among the most sensitive to the macro economy. After all, when consumers and businesses sense a recession coming, they tend to pull back on spending, which means lower demand for the products that move via ships, trucks, and trains.Therefore, the transportation sector, which also moves raw materials for manufacturers, is seen as a leading indicator for the economy. So it's likely to be among the first to see the effect of headwinds in the economy.Coming into XPO's (NYSE: XPO) first-quarter earnings report, investors had only modest expectations for its results due to pressure from tariffs and weakening economic sentiment. Its peers in the less-than-truckload (LTL) industry had already reported underwhelming results. Sector stocks tumbled last Friday after rival Saia reported a sharp drop in profits, showing the effect of a weakening macro environment.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool