Back to top

Image: Bigstock

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

Read MoreHide Full Article

XPO Logistics (XPO - Free Report) closed the most recent trading day at $78.18, moving -0.03% from the previous trading session. This change lagged the S&P 500's daily gain of 0.19%. Meanwhile, the Dow lost 0.11%, and the Nasdaq, a tech-heavy index, added 0.81%.

Prior to today's trading, shares of the freight management company had gained 8.57% over the past month. This has outpaced the Transportation sector's gain of 2.17% and the S&P 500's gain of 0.56% 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 October 28, 2019. The company is expected to report EPS of $1.03, up 15.73% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $4.28 billion, down 1.33% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.82 per share and revenue of $17.08 billion. These totals would mark changes of +19.75% and -1.16%, respectively, from last year.

Any recent changes to analyst estimates for XPO should also be noted by investors. Recent revisions tend to reflect the latest near-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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. Within the past 30 days, our consensus EPS projection has moved 0.86% lower. XPO currently has a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that XPO has a Forward P/E ratio of 20.47 right now. Its industry sports an average Forward P/E of 18.15, so we one might conclude that XPO is trading at a premium comparatively.

It is also worth noting that XPO currently has a PEG ratio of 0.66. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. XPO's industry had an average PEG ratio of 2.29 as of yesterday's close.

The Transportation - Services industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 163, which puts it in the bottom 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


XPO, Inc. (XPO) - free report >>

Published in