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

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In the latest trading session, XPO Logistics (XPO - Free Report) closed at $84.69, marking a +0.64% move from the previous day. This move outpaced the S&P 500's daily gain of 0.23%.

Coming into today, shares of the freight management company had lost 6.38% in the past month. In that same time, the Transportation sector lost 0.48%, while the S&P 500 gained 0.65%.

Investors will be hoping for strength from XPO as it approaches its next earnings release. In that report, analysts expect XPO to post earnings of $0.93 per share. This would mark year-over-year growth of 10.71%. Meanwhile, our latest consensus estimate is calling for revenue of $3.04 billion, down 27.88% from the prior-year quarter.

XPO's full-year Zacks Consensus Estimates are calling for earnings of $4.30 per share and revenue of $12.18 billion. These results would represent year-over-year changes of +113.93% and -25.06%, respectively.

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.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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 36.62% lower within the past month. XPO is holding a Zacks Rank of #5 (Strong Sell) right now.

Digging into valuation, XPO currently has a Forward P/E ratio of 19.59. For comparison, its industry has an average Forward P/E of 17.19, which means XPO is trading at a premium to the group.

It is also worth noting that XPO currently has a PEG ratio of 1.63. 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 was holding an average PEG ratio of 1.44 at yesterday's closing price.

The Transportation - Services industry is part of the Transportation sector. This group has a Zacks Industry Rank of 92, putting it in the top 37% 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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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