XPO reported strong fourth-quarter earnings, beating estimates on both the top and bottom lines. The ISM also indicated manufacturing activity expanded in January for the first time in over two years. Despite a 15%-17% volume decline due to industrial weakness, XPO stock surged 39% this year. The company’s revenue rose 5%, driven by a 5.2% increase in yield. XPO also improved key service metrics and margins, resulting in a 4% stock increase. If the manufacturing sector continues to recover, XPO has potential for further growth. However, with a high P/E ratio, investors should weigh the risks before buying XPO stock.

Read more at Nasdaq MarketSite: This Stock Is Already Up 40% This Year, And an Emerging Tailwind Could Push It Even Higher