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NEW YORK (TheStreet) -- XPO Logistics (XPO) - Get Report has been upgraded by TheStreet Ratings from Hold to Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:
"We rate XPO LOGISTICS INC (XPO) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance, good cash flow from operations, impressive record of earnings per share growth and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had sub par growth in net income."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- XPO's very impressive revenue growth greatly exceeded the industry average of 4.2%. Since the same quarter one year prior, revenues leaped by 241.5%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 51.35% over the past year, a rise that has exceeded that of the S&P 500 Index. Regarding the stock's future course, although almost any stock can fall in a broad market decline, XPO should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- Net operating cash flow has significantly increased by 207.03% to $13.35 million when compared to the same quarter last year. In addition, XPO LOGISTICS INC has also vastly surpassed the industry average cash flow growth rate of -58.17%.
- XPO LOGISTICS INC has improved earnings per share by 17.9% in the most recent quarter compared to 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 reported poor results of -$2.50 versus -$1.49 in the prior year. This year, the market expects an improvement in earnings ($0.06 versus -$2.50).
- Despite currently having a low debt-to-equity ratio of 0.37, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further. Even though the debt-to-equity ratio shows mixed results, the company's quick ratio of 3.38 is very high and demonstrates very strong liquidity.
- You can view the full analysis from the report here: XPO Ratings Report