Analysts rate XPO Logistics Inc. (XPO:NYE) with a Strong Buy, $104 Target

STA Research
by: STA Research

Analysts rate XPO Logistics Inc. with a consensus Strong Buy rating and a 12-month average Target price of $104.19 per share.

Bank of America upgraded XPO Logistics from Neutral to Buy, and raised the target from $70 to $96.

Based on the XPO Logistics Inc. stock forecasts from 14 analysts, the average analyst target price for XPO Logistics Inc. is USD 104.19 over the next 12 months. XPO Logistics Inc.’s average analyst rating is Strong Buy. Stock Target Advisor’s own stock analysis of XPO Logistics Inc. is Bearish, which is based on 2 positive signals and 13 negative signals. At the last closing, XPO Logistics Inc.’s stock price was USD 70.48. XPO Logistics Inc.’s stock price has changed by +3.74% over the past week, +3.77% over the past month and -43.60% over the last year.

XPO Logistics, Inc. provides freight transportation services in the United States, the rest of North America, France, the United Kingdom, the rest of Europe, and internationally. The company operates in two segments, North American LTL and Brokerage and Other Services. The company was incorporated in 2000 and is based in Greenwich, Connecticut.

What we like:

Positive cash flow

The company had positive total cash flow in the most recent four quarters.

Positive free cash flow

The company had positive total free cash flow in the most recent four quarters.

What we don’t like:

Low market capitalization

This is among the smaller entities in its sectors with below median market capitalization. That may make it less stable in the long run unless it has a unique technology or market that can help it grow or acquire in the future.

Poor risk-adjusted returns

This company is delivering below median risk-adjusted returns in its peers. Even if it is outperforming on returns, the returns are unpredictable. Proceed with caution.

High volatility

The total returns for this company are volatile and above median for its sector over the past 5 years. Make sure you have the risk tolerance for investing in such stock.

Overpriced compared to earnings

The stock is trading high compared to its peers on a price to earning basis and is above the sector median.

Overpriced compared to book value

The stock is trading high compared to its peer’s median on a price to book value basis.

Overpriced on a cashflow basis

The stock is trading high compared to its peers on a price to cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering buying

Poor return on equity

The company management has delivered below median return on equity in the most recent 4 quarters compared to its peers.

Poor capital utilization

The company management has delivered below median return on invested capital in the most recent 4 quarters compared to its peers.

Poor return on assets

The company management has delivered below median return on assets in the most recent 4 quarters compared to its peers.

Highly leveraged

Compared to its sector peers on debt to equity, the company is in the bottom half and is highly leveraged. However, do check the news and look at its sector and management statements. Sometimes this is high because the company is trying to grow aggressively.

Low Earnings Growth

This stock has shown below median earnings growth in the previous 5 years compared to its sector

Low Revenue Growth

This stock has shown below median revenue growth in the previous 5 years compared to its sector

Low Dividend Growth

This stock has shown below median dividend growth in the previous 5 years compared to its sector.

 

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