XPO Logistics (XPO) Trading With Heavy Volume Before Market Open

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Trade-Ideas LLC identified XPO Logistics ( XPO) as a pre-market mover with heavy volume 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 $16.7 million.
  • XPO traded 106,180 shares today in the pre-market hours as of 7:40 AM, representing 15.8% of its average daily volume.

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More details on XPO:

XPO Logistics, Inc. provides transportation and logistics services in the United States. Its Freight Brokerage segment arranges truckload, less-than-truckload, and intermodal rail freight transportation; and offers related logistics and supply-chain services. Currently there are 7 analysts that rate XPO Logistics a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for XPO Logistics has been 453,100 shares per day over the past 30 days. XPO Logistics has a market cap of $798.8 million and is part of the services sector and transportation industry. The stock has a beta of 2.27 and a short float of 40.1% with 9.41 days to cover. Shares are down 1.3% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates XPO Logistics as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and weak operating cash flow.

Highlights from the ratings report include:
  • XPO's very impressive revenue growth greatly exceeded the industry average of 4.1%. Since the same quarter one year prior, revenues leaped by 173.3%. 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's debt-to-equity ratio is very low at 0.25 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, XPO has a quick ratio of 2.28, which demonstrates the ability of the company to cover short-term liquidity needs.
  • 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 91.4% when compared to the same quarter one year ago, falling from -$3.15 million to -$6.03 million.
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness 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.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.
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