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Are Investors Undervaluing XPO Logistics (XPO) 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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
XPO Logistics (XPO - Free Report) is a stock many investors are watching right now. XPO is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 16.09. This compares to its industry's average Forward P/E of 17.41. XPO's Forward P/E has been as high as 27.72 and as low as 10.30, with a median of 15.36, all within the past year.
We also note that XPO holds a PEG ratio of 0.52. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. XPO's PEG compares to its industry's average PEG of 0.85. XPO's PEG has been as high as 0.97 and as low as 0.27, with a median of 0.50, all within the past year.
Another notable valuation metric for XPO is its P/B ratio of 2.29. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 3.62. Within the past 52 weeks, XPO's P/B has been as high as 3.54 and as low as 1.24, with a median of 2.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. XPO has a P/S ratio of 0.38. This compares to its industry's average P/S of 0.72.
Finally, we should also recognize that XPO has a P/CF ratio of 6.54. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. XPO's P/CF compares to its industry's average P/CF of 17.49. Over the past 52 weeks, XPO's P/CF has been as high as 13.10 and as low as 4.93, with a median of 6.51.
These are only a few of the key metrics included in XPO Logistics's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, XPO looks like an impressive value stock at the moment.
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Are Investors Undervaluing XPO Logistics (XPO) 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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
XPO Logistics (XPO - Free Report) is a stock many investors are watching right now. XPO is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 16.09. This compares to its industry's average Forward P/E of 17.41. XPO's Forward P/E has been as high as 27.72 and as low as 10.30, with a median of 15.36, all within the past year.
We also note that XPO holds a PEG ratio of 0.52. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. XPO's PEG compares to its industry's average PEG of 0.85. XPO's PEG has been as high as 0.97 and as low as 0.27, with a median of 0.50, all within the past year.
Another notable valuation metric for XPO is its P/B ratio of 2.29. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 3.62. Within the past 52 weeks, XPO's P/B has been as high as 3.54 and as low as 1.24, with a median of 2.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. XPO has a P/S ratio of 0.38. This compares to its industry's average P/S of 0.72.
Finally, we should also recognize that XPO has a P/CF ratio of 6.54. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. XPO's P/CF compares to its industry's average P/CF of 17.49. Over the past 52 weeks, XPO's P/CF has been as high as 13.10 and as low as 4.93, with a median of 6.51.
These are only a few of the key metrics included in XPO Logistics's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, XPO looks like an impressive value stock at the moment.