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

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In the latest trading session, XPO Logistics (XPO) closed at $142.72, marking a +0.6% move from the previous day. The stock outpaced the S&P 500's daily loss of 0.08%.

Heading into today, shares of the freight management company had lost 3.49% over the past month, lagging the Transportation sector's gain of 0.53% and the S&P 500's gain of 1.68% 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 $1.55 per share. This would mark year-over-year growth of 346.03%. Meanwhile, our latest consensus estimate is calling for revenue of $4.7 billion, up 34.3% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $6.14 per share and revenue of $19.19 billion. These totals would mark changes of +205.47% and +18.1%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for XPO. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

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. Over the past month, the Zacks Consensus EPS estimate has moved 0.24% higher. XPO currently has a Zacks Rank of #2 (Buy).

Looking at its valuation, XPO is holding a Forward P/E ratio of 23.11. For comparison, its industry has an average Forward P/E of 20.16, which means XPO is trading at a premium to the group.

Meanwhile, XPO's PEG ratio is currently 1.93. 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 1.66 at yesterday's closing price.

The Transportation - Services industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 46, which puts it in the top 19% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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