GXO Logistics stock declines but recovery potential exists

GXO Logistics' stock has dropped 47% over three years, with a 12% decline in 2025. This follows a pandemic boom in e-commerce, which has since slowed, impacting the company's revenue growth. In its recent earnings report, GXO noted that some large customers are reducing operations, affecting profitability. However, management believes this is a temporary issue, as new business wins are expected to offset losses. Despite current challenges, GXO has two strong profit drivers: the growth of outsourced logistics and advancements in technology. The company’s sales pipeline has increased, suggesting potential for recovery in the e-commerce sector.