Here's What XPO Logistics Expects From the Coronavirus Crisis
Like much of the stock market, shares of XPO Logistics (NYSE: XPO) have been hammered during the coronavirus crisis, down about 45% since Feb. 21. Demand for logistics and transportation services is closely tied to the overall economy, and with a broad range of businesses -- including retailers, restaurants, and even some manufacturers -- currently shut down because of the pandemic, investors believe supply chain needs will decline as well.
Nonetheless, CEO Brad Jacobs struck a mostly optimistic tone in a recent letter to shareholders, acknowledging that the global economy would be significantly affected by COVID-19 this year, but he predicting a recovery next year. As the head of one of the world's biggest providers of services like freight brokerage, contract logistics, and less-than-truckload transportation (LTL), Jacobs' commentary is worth following for any investor curious about the direction of the global economy, as logistics is a leading indicator. Let's take a look at a few of the most illuminating comments from the letter.
Image source: XPO Logistics.
Source Fool.com
