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Is XPO Logistics (XPO) Stock Undervalued Right Now?
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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One stock to keep an eye on is XPO Logistics (XPO - Free Report) . XPO is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 29.55, while its industry has an average P/E of 44.83. Over the past year, XPO's Forward P/E has been as high as 35.25 and as low as 8.17, with a median of 31.59.
XPO is also sporting a PEG ratio of 3. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. XPO's PEG compares to its industry's average PEG of 3.81. XPO's PEG has been as high as 3.74 and as low as 0.30, with a median of 3.26, all within the past year.
We should also highlight that XPO has a P/B ratio of 3.82. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 3.94. Over the past 12 months, XPO's P/B has been as high as 4.23 and as low as 1.32, with a median of 2.93.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. XPO has a P/S ratio of 0.64. This compares to its industry's average P/S of 1.
Finally, our model also underscores that XPO has a P/CF ratio of 13.65. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 20.68. Over the past 52 weeks, XPO's P/CF has been as high as 15.10 and as low as 3.62, with a median of 8.44.
These are just a handful of the figures considered in XPO Logistics's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that XPO is an impressive value stock right now.
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Is XPO Logistics (XPO) Stock Undervalued Right Now?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One stock to keep an eye on is XPO Logistics (XPO - Free Report) . XPO is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 29.55, while its industry has an average P/E of 44.83. Over the past year, XPO's Forward P/E has been as high as 35.25 and as low as 8.17, with a median of 31.59.
XPO is also sporting a PEG ratio of 3. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. XPO's PEG compares to its industry's average PEG of 3.81. XPO's PEG has been as high as 3.74 and as low as 0.30, with a median of 3.26, all within the past year.
We should also highlight that XPO has a P/B ratio of 3.82. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 3.94. Over the past 12 months, XPO's P/B has been as high as 4.23 and as low as 1.32, with a median of 2.93.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. XPO has a P/S ratio of 0.64. This compares to its industry's average P/S of 1.
Finally, our model also underscores that XPO has a P/CF ratio of 13.65. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 20.68. Over the past 52 weeks, XPO's P/CF has been as high as 15.10 and as low as 3.62, with a median of 8.44.
These are just a handful of the figures considered in XPO Logistics's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that XPO is an impressive value stock right now.