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XPO Logistics (XPO) Hits a 52-Week High, Can the Run Continue?
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Have you been paying attention to shares of XPO Logistics, Inc. (XPO - Free Report) ? Shares have been on the move with the stock up 12.43% over the past month. XPO hit a new 52-week high of $101.54 in the previous session. The stock has gained 10.15% since the start of the year compared to the -2.33% move for the Transportation sector and the -0.26% year-to-date return for its peer group.
What's Driving the Outperformance?
The stock has an impressive record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on February 7, 2018, XPO Logistics reported EPS of $0.45 versus the Zacks Consensus Estimate of $0.43 while it beat the consensus revenue estimate by 7.94%.
For the current fiscal year, XPO Logistics is expected to post earnings of $3.39 per share on $16.42 billion in revenues. This represents a 73.85% change in EPS on a 6.75% change in revenues. For the next fiscal year, the company is expected to earn $4.23 per share on $17.47 billion in revenues. This represents changes of 24.64% and 6.38%, respectively.
Valuation Metrics
XPO Logistics may be at a 52-week high right now, but what might the future hold for XPO? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
XPO Logistics has a Value Score of C. The stock's Growth and Momentum Scores are A and D, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 29.75x current fiscal year EPS estimates. On a trailing cash flow basis, the stock currently trades at 13.34x versus its peer group's average of 11.89x. Additionally, the stock has a PEG ratio of 1.02. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, XPO Logistics currently has a Zacks Rank of #2 (Buy) thanks to rising earnings estimates.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 and Style Scores of A or B, it looks as if XPO Logistics fits the bill. Thus, it seems as though XPO shares could have a bit more room to run in the near term.
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XPO Logistics (XPO) Hits a 52-Week High, Can the Run Continue?
Have you been paying attention to shares of XPO Logistics, Inc. (XPO - Free Report) ? Shares have been on the move with the stock up 12.43% over the past month. XPO hit a new 52-week high of $101.54 in the previous session. The stock has gained 10.15% since the start of the year compared to the -2.33% move for the Transportation sector and the -0.26% year-to-date return for its peer group.
What's Driving the Outperformance?
The stock has an impressive record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on February 7, 2018, XPO Logistics reported EPS of $0.45 versus the Zacks Consensus Estimate of $0.43 while it beat the consensus revenue estimate by 7.94%.
For the current fiscal year, XPO Logistics is expected to post earnings of $3.39 per share on $16.42 billion in revenues. This represents a 73.85% change in EPS on a 6.75% change in revenues. For the next fiscal year, the company is expected to earn $4.23 per share on $17.47 billion in revenues. This represents changes of 24.64% and 6.38%, respectively.
Valuation Metrics
XPO Logistics may be at a 52-week high right now, but what might the future hold for XPO? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
XPO Logistics has a Value Score of C. The stock's Growth and Momentum Scores are A and D, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 29.75x current fiscal year EPS estimates. On a trailing cash flow basis, the stock currently trades at 13.34x versus its peer group's average of 11.89x. Additionally, the stock has a PEG ratio of 1.02. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
XPO Logistics, Inc. Price and Consensus
XPO Logistics, Inc. Price and Consensus | XPO Logistics, Inc. Quote
Zacks Rank
We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, XPO Logistics currently has a Zacks Rank of #2 (Buy) thanks to rising earnings estimates.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 and Style Scores of A or B, it looks as if XPO Logistics fits the bill. Thus, it seems as though XPO shares could have a bit more room to run in the near term.