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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 at $80.80 in the latest trading session, marking a +1.53% move from the prior day. The stock outpaced the S&P 500's daily gain of 1.15%.

Prior to today's trading, shares of the freight management company had lost 10.11% over the past month. This has lagged the Transportation sector's loss of 4.23% and the S&P 500's loss of 4.67% in that time.

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 $1.71 per share. This would mark year-over-year growth of 103.57%. Meanwhile, our latest consensus estimate is calling for revenue of $3.06 billion, down 27.49% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.19 per share and revenue of $12.16 billion. These totals would mark changes of +108.46% and -25.17%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for XPO. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 2.03% lower. XPO currently has a Zacks Rank of #5 (Strong Sell).

Investors should also note XPO's current valuation metrics, including its Forward P/E ratio of 18.98. This represents a premium compared to its industry's average Forward P/E of 17.2.

Investors should also note that XPO has a PEG ratio of 0.75 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 was holding an average PEG ratio of 0.94 at yesterday's closing price.

The Transportation - Services industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 70, which puts it in the top 28% 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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