On today’s episode of Yahoo Finance’s “Good Buy or Goodbye,” host Julie Hyman welcomes Tom Hayes, chairman and managing member of Great Hill Capital, to discuss picking and avoiding top stocks in the logistics and utilities sectors.
Hayes recommends GXO Logistics (GXO) as a Buy, highlighting Chairman Brad Jacobs’ “Midas touch” and track record of shareholder value creation. He sees the company moving from a de-inventory cycle to a replenishment cycle and projects EBITDA growth to nearly double by 2027. Hayes predicts this will drive multiple expansion over the next few years, propelling the stock higher.
Meanwhile, Hayes is advising investors to avoid the utilities sector (XLU) as a whole. He argues that the sector’s recent rally, driven by talk of AI and expectations of a Federal Reserve rate cut, is a classic “buy the rumor, sell the news” situation. Hayes emphasized that utilities are a defensive sector, saying, “Given the current market conditions, I don’t see a need to be overly defensive right now.”
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This post was written by Angel Smith