Hexcel, GXO Logistics, and ON Semiconductor Positioned for Growth Despite Current Market Challenges

Three companies – Hexcel, GXO Logistics, and ON Semiconductor – are currently trading at significant discounts but are poised to benefit from long-term growth trends in aerospace, e-commerce logistics, and electric vehicles, respectively.

Advanced materials company Hexcel is experiencing a temporary slowdown due to production challenges at Boeing and Airbus, despite a clear trajectory for increased composite material usage in future aircraft generations. The classic Boeing 737 utilized approximately 5% composite content, while the newer 737 MAX boasts 15%, with wide-body aircraft like the Boeing 787 and Airbus A350 exceeding 50%. This shift towards lighter, more fuel-efficient materials is driven by both economic and environmental pressures within the aviation industry.

E-commerce logistics provider GXO Logistics is navigating a correction following the pandemic-fueled boom in online shopping, with organic revenue growth slowing in 2023 and 2024. However, the continued expansion of e-commerce, coupled with advancements in logistics technologies like automation and AI, positions GXO for future demand. The company is already seeing momentum build in 2025, winning new contracts as some customers reassess their outsourcing needs, and Wall Street anticipates double-digit earnings growth in 2026 and 2027. You can find more information about e-commerce trends at Statista.

ON Semiconductor, focused on power and sensing technologies for automotive and industrial applications, including electric vehicles, is facing headwinds due to automakers scaling back EV spending amid higher interest rates. Despite this, the long-term outlook for EVs remains strong, as evidenced by recent commitments like Ford’s $5 billion investment, and ON Semiconductor’s technology is crucial for EV charging infrastructure and vehicle components. For a deeper dive into the semiconductor industry, explore resources from the Semiconductor Industry Association. Analysts expect the company to benefit from the growing demand for AI data centers as well.

Officials at all three companies indicate they are focused on navigating current challenges and capitalizing on long-term growth opportunities, with Wall Street projecting significant revenue and earnings increases in the coming years.