GXOt just delivered a five-cents-a-share earnings beat and raised its full-year outlook.
Wilson said business remains strong at GXO and his company is hard at work, delivering reliable services to their customers ahead of the peak shopping season. GXO signed $1 billion worth of new business this quarter and almost $4 billion so far this year.
GXO is in growth mode. The company is currently adding 10,000 new employees to its team and is pairing that with tons of automation and robotics at its facilities for maximum efficiency.
The trend in logistics today is to place products close to your end customers. The company is building 75 new warehouse facilities in major markets, so customers can offer same-day and next-day delivery on more products.
Cramer said every time you hear about supply chain issues, think about how companies like GXO are profiting from it.
Let's check out the charts of GXO.
In this daily Japanese candlestick chart of GXO, below, we have a limited amount of price history. GXO is trading above the rising 20-day and 50-day moving average lines. The trading volume has declined from its early days as a public company but the On-Balance-Volume (OBV) line has stayed relatively firm. The Moving Average Convergence Divergence (MACD) oscillator is pointed higher. There are some small upper shadows above $90 but I do not see that as a reason to be concerned.
In this daily Point and Figure chart of GXO, below, we can see a $101 price target.
Bottom line strategy: Keeping in mind we do not have a lot of price history to work with, traders could approach the long side of GXO risking to $82 for now. The $101 area is our first target.