Today's Perilous Reversal Stock: XPO Logistics (XPO)
Trade-Ideas LLC identified
(
) as a "perilous reversal" (up big yesterday but down big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified XPO Logistics as such a stock due to the following factors:
- XPO has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $42.0 million.
- XPO has traded 76,470 shares today.
- XPO is down 3.1% today.
- XPO was up 6.7% yesterday.
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More details on XPO:
XPO Logistics, Inc. provides transportation and logistics services primarily in the United States. The company operates through two segments, Transportation and Logistics. Currently there are 11 analysts that rate XPO Logistics a buy, no analysts rate it a sell, and none rate it a hold.
The average volume for XPO Logistics has been 2.6 million shares per day over the past 30 days. XPO Logistics has a market cap of $2.5 billion and is part of the services sector and transportation industry. The stock has a beta of 1.94 and a short float of 34% with 15.76 days to cover. Shares are down 32.1% year-to-date as of the close of trading on Friday.
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Analysis:
rates XPO Logistics as a
. The company's strengths can be seen in multiple areas, such as its robust revenue growth and notable return on equity. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, weak operating cash flow and poor profit margins.
Highlights from the ratings report include:
- XPO's very impressive revenue growth greatly exceeded the industry average of 1.6%. Since the same quarter one year prior, revenues leaped by 109.3%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- XPO LOGISTICS INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, XPO LOGISTICS INC continued to lose money by earning -$1.98 versus -$2.50 in the prior year. This year, the market expects an improvement in earnings (-$0.35 versus -$1.98).
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Air Freight & Logistics industry and the overall market, XPO LOGISTICS INC's return on equity significantly trails that of both the industry average and the S&P 500.
- Net operating cash flow has significantly decreased to -$70.50 million or 294.64% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Air Freight & Logistics industry. The net income has significantly decreased by 440.6% when compared to the same quarter one year ago, falling from -$13.76 million to -$74.40 million.
- You can view the full XPO Logistics Ratings Report.
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