GXO Logistics (GXO)
Entry: Unlock
Price target: 56.00-57.00
Second PT: Unlock
GXO is a logistics company specializing in a wide range of supply chain services, including warehousing and distribution, transportation solutions, manufacturing support, managed transportation, order fulfillment, and reverse logistics. Operating over 1,000 facilities worldwide, GXO is the largest pure-play contract logistics provider in the world.
Since its spin-off from XPO, GXO has struggled to keep investors’ attention, falling more than 50% from its 2021 highs. But recent acquisitions, major contract wins, and leadership changes suggest a potential turning point may be taking shape. Their most notable new deal is the company’s largest contract ever, worth $2.5 billion in lifetime value within health sciences. GXO also secured over $1 billion in new business for two consecutive years, highlighting consistent demand and strong customer retention. With a robust sales pipeline, up 15% year over year, and e-commerce tailwinds accelerating again, sentiment may continue to improve.
At a price to earnings ratio of about 66x, the stock is trading at a premium. However, the company’s strong forward outlook, rising contract volume, and improving margins help justify the valuation. Margins have already expanded this year, with management guiding for further improvement in 2025 and more meaningful expansion in 2026, supported by automation, operating leverage, and expected synergies from the Wincanton acquisition.
The combination of multi-year contract visibility, e-commerce recovery, international expansion (particularly in Germany), and ongoing investment in automation positions GXO for potentially stronger performance ahead.
Risks:
The Wincanton acquisition, while strategically important, carries integration risks that could pressure margins if synergies take longer than expected. This is something to watch closely over the coming quarters. Additionally, GXO competes in a cyclical industry heavily influenced by consumer demand, e-commerce, and global supply chain conditions. An
iShares Russell 2000 ETF (IWM)
Entry: Unlock
Price target: 280.00+
Second PT: Unlock
Small-cap companies are extremely undervalued compared to large caps on the market right now (near 20 year relative lows), making The Russell 2000 historically cheap compared to the S&P 500 when looking at valuation ratios like price to earnings, price to sales, and when we compare their relative performance over time. While large caps have massively outperformed for years, small caps have barely moved for 3+ years, likely because of the higher interest rate environment and overall economic uncertainty.
The Russell 2000 is the small-cap index, and has historically outperformed the S&P 500 anytime their ratios have diverged this far. The Russell 2000’s forward P/E is ~14–16×, while the S&P 500 is at ~20–22×, marking a 30-35% valuation discount. With valuation of technology giants and large cap stocks under question, investors are turning to the undervalued parts of the market. Many of these opportunities can be found in small-caps, making IWM a strong play into the end of the year and into 2026.
The case for interest rates:
Small caps historically outperform large caps during the first year of a rate cut cycle, yet that dynamic didn’t fully play out this year despite the initial easing. With additional cuts on the horizon and economic confidence gradually recovering, IWM is positioned to become a standout performer next year. Lower rates reduce refinancing costs, critical for small caps with heavier debt loads, and directly support margin expansion. At the same time, easier access to capital boosts liquidity across smaller, higher beta companies, creating a more favorable backdrop for a sustained small cap rebound.
Stock Name - Unlock
Entry: 59.00-61.00
Price target: 68.00-70.00
Second PT: TBD
You've reached the end of our complimentary public watchlist. Unlock for the full list by becoming a member of our Hyper Stocks community. Click here to unlock more high probability set-ups!
Stock Name - Unlock
Entry: 16.50-17.00
Price target: 18.50-19.00
Second PT: 20.00-21.00
You've reached the end of our complimentary public watchlist. Unlock for the full list by becoming a member of our Hyper Stocks community. Click here to unlock more high probability set-ups!
Stock Name - Unlock
Entry: 42.00-44.00
Price target: 51.00-53.00
Second PT: 60.00-61.00
You've reached the end of our complimentary public watchlist. Unlock for the full list by becoming a member of our Hyper Stocks community. Click here to unlock more high probability set-ups!
Stock Name - Unlock
Entry: 290.00-300.00
Price target: 315.00-320.00
Second PT: TBD
You've reached the end of our complimentary public watchlist. Unlock for the full list by becoming a member of our Hyper Stocks community. Click here to unlock more high probability set-ups!
Disclaimer: This article is for informational and educational purposes only and does not constitute financial advice. Investing involves risk, including the possible loss of capital. Always conduct your own research or consult with a licensed financial advisor before making investment decisions.
Hyper Stocks and its contributors may hold positions in some of the securities or assets mentioned above. These positions are subject to change without notice. Any opinions expressed reflect current views at the time of writing and are not guarantees of future performance. Past performance does not guarantee future results.