Does XPO (XPO) Have an Idiosyncratic Growth Potential?

Core Insights - ClearBridge Investments reported a strong but volatile performance in US equities for Q4 2025, with the S&P 500 Index returning 2.7% and the Russell Midcap Growth Index declining 3.7% [1] - The ClearBridge Growth Strategy achieved its third consecutive quarter of outperformance by maintaining a disciplined portfolio management approach and opportunistic capital allocation [1] Company Overview: XPO, Inc. - XPO, Inc. (NYSE:XPO) is a freight transportation services company with a market capitalization of $17.279 billion [2] - As of January 9, 2026, XPO's stock closed at $146.73 per share, with a one-month return of -1.56% and a 52-week gain of 9.34% [2] Investment Strategy - ClearBridge Growth Strategy rotated its exposure from Old Dominion Freight Line to XPO, Inc. in Q4 2025, citing XPO's potential for idiosyncratic growth amid a challenging macro environment for freight [3] - The company is under new leadership, which is focused on improving service levels, pricing discipline, and margins, suggesting potential for outperformance [3] Hedge Fund Interest - XPO, Inc. was held by 40 hedge fund portfolios at the end of Q3 2025, a decrease from 48 in the previous quarter, indicating a decline in popularity among hedge funds [4] - While XPO is recognized for its investment potential, certain AI stocks are believed to offer greater upside potential with less downside risk [4]