Why Shares of XPO Logistics Climbed in May
XPO Logistics (NYSE: XPO) shares lost more than half of their value between mid-February and mid-March on fears the COVID-19 pandemic would cause a sustained recession and that the transport and logistics company was ill-prepared to deal with it.
Those fears in the months that have followed have receded, and as they have, the stock has staged a bit of a rally. Shares of XPO gained 18.1% in May, according to data provided by S&P Global Market Intelligence, getting back toward breakeven for the year.
The pandemic has hit shipping hard, slowing global economies, cutting supply chains, and sapping demand for logistics and transport services. The entire sector took a hit as China went into a lockdown early in the year, and the pressure increased as the pandemic spread globally.
Source Fool.com
