ClearBridge Investments released its fourth-quarter 2025 investor letter, reporting a strong but volatile performance for US equities, with the S&P 500 Index returning 2.7% and the Russell Midcap Growth Index declining 3.7%. The strategy saw outperformance by taking a balanced, highly active share approach and maintaining a long-term investment philosophy. XPO, Inc. was highlighted as a key stock in the letter, with a one-month return of -1.56% and a market capitalization of $17.279 billion.

In its fourth-quarter 2025 investor letter, ClearBridge Growth Strategy mentioned elevating the quality of its portfolio by rotating exposure from Old Dominion Freight Line to XPO, Inc. within the industrials sector. XPO, Inc. is the fourth-largest less than-truckload provider in North America, showing potential for growth under new leadership. The company is improving service levels, pricing discipline, and margins, offering room for outperformance in a challenging macro environment.

XPO, Inc. is not among the 30 most popular stocks among hedge funds, with 40 hedge fund portfolios holding the stock at the end of the third quarter. While XPO, Inc. shows investment potential, certain AI stocks are seen as offering greater upside potential with less downside risk. Investors seeking undervalued AI stocks may find opportunities in companies benefiting from Trump-era tariffs and the onshoring trend.

Read more at Yahoo Finance: Does XPO (XPO) Have an Idiosyncratic Growth Potential?