GXO Logistics: A Buy Call With Rising Macro Risks

Dhierin BechaiInvesting Group LeaderFollow5ShareSavePlay(7min)CommentsSummaryGXO Logistics (GXO) remains a buy despite macro risks, offering 15% upside on 2025 earnings and 38% on 2026 expectations.GXO is partially insulated from energy price shocks, but faces demand-side risks as higher energy costs could weaken consumer demand.Margins are expected to improve with scale, new higher-value customers, and potential M&A, though 2026 guidance does not reflect Middle East conflict impacts.Free cash flow growth of 23.4% and a $300M remaining buyback authorization support capital allocation flexibility, but deleveraging or M&A may be preferable.Looking for more investing ideas like this one? Get them exclusively at The Aerospace Forum. Learn More » onurdongel/iStock via Getty Images In October 2025, I upgraded GXO Logistics (GXO) from hold to buy. Since then, the stock has lost 4.8% of its value against the S&P 500 losing 5.6% of its value. That share price decline is driven byThis article was written byDhierin Bechai23.43K FollowersFollowDhierin-Perkash Bechai is an aerospace, defense and airline analyst. Dhierin runs the investing group The Aerospace Forum, whose goal is to discover investment opportunities in the aerospace, defense and airline industry. With a background in aerospace engineering, he provides analysis of a complex industry with significant growth prospects, and offers context to developments as they occur, describing how they might affect investment theses. His investing ideas are driven by data informed analysis. The investing group also provides direct access to data analytics monitors. Learn more.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.