Jim Cramer’s 9 Failed Predictions From 12 Months Ago

5. XPO, Inc. (NYSE:XPO)

Number of Hedge Fund Holders: 45

In that older episode, a caller asked about XPO, Inc. (NYSE:XPO) following its earnings beat at the time. Cramer praised the company’s consistent execution and recommended owning the stock, saying:

“XPO reported last week and beat on the top and the bottom line. But they’re a serial beater. No, they’re a serial beater, it’s good. The stock is really good. The company’s really good. I would own it.”

The stock dipped by 0.77% since Cramer’s comments, making it an uninspiring prediction.

XPO (NYSE:XPO) is a freight transportation company that provides less-than-truckload, truckload, brokerage, multimodal options, managed transportation, and warehousing. Although the stock hasn’t done well in the past 12 months, Cramer still favors it and included it in his list of 20 all-time favourites. Here’s what he said in April:

“In 15th place is a company you should know or at least remember, it’s called XPO, the trucking company, formally known as XPO Logistics, which is up 6,493% since we started doing the show. This is a Brad Jacobs rollup and breakup story. He took control of the old Express-1 Expedited Solutions back in 2011. He changed the name to XPO Logistics and quickly got to work acquiring other companies. It’s rolling up companies in the very fragmented trucking and logistics industries.

Eventually, XPO became a leading player, but around four years ago, Jacobs and his team felt the company was undervalued, and they began breaking up the business, spinning off the logistics business as GXO Logistics and a freight brokerage business as RXO. The remaining XPO operates in the less-than-truckload sector, LTL. I have a lot of confidence in Brad Jacobs over the long term, but I don’t have much confidence in the trucking industry until we get past the disruption from the president’s tariffs. By the way, Brad Jacobs is now also doing Beacon Supply, doing a rollup in the, well, let’s say the roofing or maybe even bigger than that, housing industry.”