GXO Logistics, Inc. (GXO): A Bull Case Theory 

We came across a bullish thesis on GXO Logistics, Inc. on DeepValue Capital’s Substack. In this article, we will summarize the bulls’ thesis on GXO. GXO Logistics, Inc.’s share was trading at $57.56 as of January 28th. GXO’s trailing and forward P/E were 76.75 and 19.19  respectively according to Yahoo Finance.

GXO Logistics (GXO) is the world’s largest pure-play contract logistics provider, operating at the center of global supply chains for blue-chip customers such as Boeing, LVMH, and Nestlé, with long-term, multi-year contracts that provide strong revenue visibility. Spun out of XPO Logistics in 2021 to unlock value, GXO has built a geographically diversified business, with nearly 45% of revenue from the UK, 26% from the U.S., and the remainder spread across key European markets. In 2024, GXO generated $11.7 billion in revenue, primarily from omnichannel retail, alongside meaningful exposure to technology, industrials, food and beverage, and consumer packaged goods.

While logistics is often viewed as a low-tech industry, GXO is differentiating itself through aggressive investment in automation, AI, and robotics, positioning it as one of the most technologically advanced operators in the sector. The company has partnered with Dexterity to deploy AI-powered robotic arms for depalletizing and labeling, with Dexory to automate real-time inventory scanning using autonomous robots, and with Agility Robotics to pilot Digit, a humanoid robot designed to operate in human-centric warehouse environments.

These initiatives are already deployed across more than half of GXO’s global sites and are driving faster throughput, higher accuracy, and lower cost per unit, creating a structural pathway to margin expansion. In mid-2025, GXO further strengthened its moat with the launch of GXO IQ, an AI-powered logistics platform built on over 20 years of proprietary operational data, designed to optimize complex supply chains.

As automation becomes core to scalable logistics infrastructure, GXO is winning share, deepening customer relationships, and building durable competitive advantages that underpin a long-term view of meaningful upside, supporting a valuation case that points toward $80+ per share despite near-term risks inherent in global trade and execution.

Previously, we covered a bullish thesis on GXO Logistics, Inc. (GXO) by Busy Investor Stock Reports in February 2025, which highlighted strong revenue growth, customer expansion, AI-driven efficiency gains, and short-term headwinds from regulatory review and capacity realignments. GXO’s stock price has appreciated by approximately 46.64% since our coverage as the thesis played out. DeepValue Capital shares a similar view but emphasizes automation and robotics-led margin expansion.

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Disclosure: None.