XPO, Inc. (XPO): A Bull Case Theory

We came crossed a bullish thesis connected XPO, Inc. connected R. Dennis’s Substack’s Substack by OppCost. In this article, we volition summarize the bulls’ thesis connected XPO. XPO, Inc.'s stock was trading astatine $148.79 arsenic of January 26th. XPO’s trailing and guardant P/E were 53.52 and 34.72 respectively according to Yahoo Finance.

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XPO, Inc., unneurotic with its subsidiaries, provides freight proscription services successful the United States, North America, France, the United Kingdom, and remainder of Europe. XPO presents a compelling bullish accidental done the caller organization enactment of selling $115 onslaught puts expiring February 20, 2026. With the banal trading astir $147.27 arsenic of January 13, 2026, the puts are profoundly out-of-the-money, offering a ~22% borderline of safety.

The commercialized collected $0.85 per stock crossed 5,555 contracts, generating $472,175 successful premium, highlighting beardown organization conviction. This setup appeals to retail investors seeking high-probability, tactical trades, peculiarly fixed the timing astir XPO’s Q4 2025 net study connected February 5, 2026.

Elevated implied volatility up of net increases imaginable returns, and a post-earnings volatility crush could let aboriginal profitable exits adjacent if the stock remains flat. Technically, the $115 onslaught sits good beneath XPO’s 200-day moving mean of $126.44, providing a beardown buffer against downside hazard and reinforcing the trade’s blimpish profile.

Fundamentally, XPO’s North American Less-Than-Truckload (LTL) concern continues to outperform, capturing marketplace stock with output maturation supra 6%, reflecting robust pricing powerfulness successful a brushed freight environment.

While assemblage volatility driven by manufacturing reshoring and imaginable tariffs remains a consideration, XPO’s operational resilience, beardown margins, and strategical positioning marque the probability of a important diminution to $115 low. Overall, the operation of method support, beardown fundamentals, and organization assurance positions XPO arsenic a favorable bullish accidental for traders seeking high-probability, risk-adjusted returns implicit the adjacent term.

Previously, we covered a bullish thesis on Old Dominion Freight Line, Inc. (ODFL) by Richard Toad successful October 2024, which highlighted the company’s standard advantages, union-free workforce, precocious ROIC, and marketplace stock gains successful the LTL sector. ODFL’s banal terms has depreciated by astir 11.30% since our sum owed to broader assemblage weakness and macro headwinds. OppCost shares a akin position connected XPO, Inc. but emphasizes tactical organization trades, elevated implied volatility astir earnings, and near-term risk-adjusted opportunities for retail investors alongside beardown LTL fundamentals.