XPO Logistics (XPO Quick QuoteXPO ) closed at $84.15 in the latest trading session, marking a -0.78% move from the prior day. This move lagged the S&P 500’s daily loss of 0.77%.
Coming into today, shares of the freight management company had lost 3.89% in the past month. In that same time, the Transportation sector gained 0.78%, while the S&P 500 gained 1.55%.
XPO will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.93, up 10.71% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $3.04 billion, down 27.88% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.30 per share and revenue of $12.18 billion. These totals would mark changes of +113.93% and -25.06%, respectively, from last year.
Any recent changes to analyst estimates for XPO should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company’s business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 33.67% lower within the past month. XPO is currently sporting a Zacks Rank of #5 (Strong Sell).
Investors should also note XPO’s current valuation metrics, including its Forward P/E ratio of 19.74. This represents a premium compared to its industry’s average Forward P/E of 16.35.
It is also worth noting that XPO currently has a PEG ratio of 1.65. 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. Transportation – Services stocks are, on average, holding a PEG ratio of 1.45 based on yesterday’s closing prices.
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.
You can find more information on all of these metrics, and much more, on Zacks.com.