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It is sometimes amazing to see how different companies operating in the same industry can have polar opposite outcomes. Among the various missed opportunities I sometimes reminisce about is the trucking company J.B. Hunt (JBHT), which has done very well during the two decades since I first came across the company. While I didn’t invest in J.B. Hunt, I am equally glad I avoided the leveraged Yellow Corporation (YELL), which has been a slow motion wreck that appears to be on its last tires. J.B. Hunt is now a $21 billion company and Yellow has a market cap of just $54 million.
With Yellow once again flirting with bankruptcy, the company limited pick-ups at all its terminals, giving other less-than-truckload (LTL) freight companies a boost in their stock price this week. One such beneficiary of Yellow’s actions, XPO, is the subject of our article today. XPO, which at at one point went on a binge of acquisitions to become a logistics company that provided various services, has recently scaled back through divestitures and spinoffs to become a pure play LTL company.