A Logistics Leader

E-commerce stocks have gotten smashed this earnings season, as more people return to in-store

shopping. One e-commerce stock delivered a standout first-quarter report, though: GXO Logistics

(NYSE: GXO) reported revenue growth of 14% year-over-year, and net income more than doubling.

GXO is the world’s biggest pureplay contract logistics company, operating high-tech warehouses for multinational companies such as Apple, Nike, Nestle and Whirlpool. The company is bullish on e-commerce, and its investments in areas like reverse logistics (processing returns) make it attractive to retailers selling online.

If a recession arrives, the company is prepared, and will aim to grab market share. Nearly 40% of its contracts are “cost-plus,” meaning that GXO charges customers

a price based on a fixed profit rate over its own costs. That insulates it

from inflationary pressures and also helps protect its profit margins. The company also has minimum volume requirements in many of its contracts to protect itself, and uses take-or-pay clauses, ensuring that customers pay a fee if they don’t ship the volumes they’ve committed to.

GXO is penetrating an addressable market worth $430 billion at a double-digit growth rate. And the stock recently looked well-priced, trading at

a forward-looking price-to-earnings (P/E) ratio near 19. As other e-commerce stocks face headwinds, GXO looks well-positioned, and should win no matter which companies prosper at the retail level. (The Motley Fool

has recommended GXO Logistics.)