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XPO Logistics (XPO) Outpaces Stock Market Gains: What You Should Know

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XPO Logistics (XPO - Free Report) closed the most recent trading day at $143.32, moving +1.57% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.35%.

Heading into today, shares of the freight management company had lost 5.66% over the past month, lagging the Transportation sector's loss of 1.89% and the S&P 500's gain of 3.64% in that time.

Wall Street will be looking for positivity from XPO as it approaches its next earnings report date. This is expected to be July 28, 2021. In that report, analysts expect XPO to post earnings of $1.70 per share. This would mark year-over-year growth of 369.84%. Our most recent consensus estimate is calling for quarterly revenue of $4.85 billion, up 38.37% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $6.32 per share and revenue of $19.44 billion, which would represent changes of +214.43% and +19.6%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for XPO. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 1.16% higher within the past month. XPO is holding a Zacks Rank of #3 (Hold) right now.

Digging into valuation, XPO currently has a Forward P/E ratio of 22.32. For comparison, its industry has an average Forward P/E of 20.19, which means XPO is trading at a premium to the group.

Investors should also note that XPO has a PEG ratio of 1.86 right now. 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. The Transportation - Services industry currently had an average PEG ratio of 1.34 as of yesterday's close.

The Transportation - Services industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 73, which puts it in the top 29% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

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