Supply chain crises: Buy these 4 logistics stocks with over 100% return in a year

Highlights 

• The UK is going through a supply chain crisis as retailers reported the lowest stock levels since 1983 because of the shortage of staff and the disruption to transport.
• CBI found that in relation to expected sales, stock levels crashed to the lowest in August.
• The supply crunch in materials and staff presently is at its most acute level, which can be seen as a worrying signal for the economy.

The global supply chain trouble led by the pandemic and worker shortages is now clearly visible in the UK as well, as retailers reported the lowest stock levels since 1983 because of the shortage of staff and the disruption to transport due to Brexit and Covid. The Confederation of British Industry (CBI) found that in relation to expected sales, stock levels crashed to the lowest in August since the tracking of the retail trends started 40 years ago.

The reason for the crash was primarily driven by worker shortage in various important industrial sectors due to the pingdemic and exacerbated by Brexit chaos. The supply crunch in materials and staff presently is at its most acute level, which can be seen as a worrying signal for the economy.

Here are four logistics and freight stocks that are in demand amid the crisis:

Xpediator Plc (LON:XPD)

The freight management company’s shares were up 5.04 per cent and were trading at GBX 73 on 25 August as of 12:48 GMT+1. The shares have a market capitalisation of £98.47 million and have given one-year return of 241.23 per cent.

In a trading update, the company increased its guidance for its performance for the year ending 31 December 2021. It said that demand for its services throughout the three divisions was robust, and divisions like transport and logistics and warehousing, impacted by the pandemic, have been trading in the positive.

DX Group Plc (LON:DX)

Shares of the courier and logistics company were trading up 2.90 per cent at GBX 35.50 on 25 August as of 12:48 GMT+1. They have a market capitalisation of £197.92 million and have given one-year return of 120 per cent.

For the 53-weeks ended 3 July 2021, the company’s net cash at £16.8 million is better than expected, a 37 per cent year-on-year jump from £12.3 million. The company’s board expects its performance to exceed market estimates for adjusted profit before tax. DX Freight’s revenue is expected to be approximately £6 million more than what was anticipated.

Wincanton Plc (LON:WIN)

The logistics service provider’s shares were up 0.75 per cent at GBX 404 on 25 August as of 12:48 GMT+1. The shares have a market capitalisation of £499.42 million and have a one-year return of 115.83 per cent.

The company said its strong revenue performance seen in the second half last year had been maintained in the first quarter of this year. Profits have significantly increased compared to the same period last year.

Clipper Logistics Plc (LON:CLG)

Shares of the retail logistics company were up 0.25 per cent and were trading at GBX 814 on 25 August as of 12:48 GMT+1. The shares have a market capitalisation of £826.86 million and have a one-year return of 101.49 per cent.

For the year ended 30 April 2021, the company reported a 39 per cent to £696.2 million from £500.7 million in the same period a year ago. Group EBIT increased 22.5 per cent from £39.8 million compared to £32.5 million a year ago.