Analysts’ recommendations for XPO
In this last part of the series, let’s see how Thomson Reuters analysts are rating XPO Logistics (XPO) before its second-quarter earnings release. Currently, 20 analysts are covering the stock. Four (20%) of them are bullish on the stock and have rated it a “strong buy.” Twelve of them (60%) have rated it a “buy,” and the remaining four (20%) have recommended a “hold.” None of the analysts have rated the stock a “sell.”
Analysts’ target prices for XPO and its peers
Analysts have set a consensus price target of $117.83 for XPO Logistics. The trucking company was trading at $99.22 on July 26. In the past year, the stock has risen 67.4%. Now let’stake a look at analysts’ target prices and return potential for XPO’s peers.
- C.H. Robinson Worldwide (CHRW): $92.11 with a return potential of 0.3%
- Expeditors International of Washington (EXPD): $70.75 with no return potential
- Old Dominion Freight Lines (ODFL): $150.23 with a return potential of 4%
- Schneider National (SNDR): $31.70 with a return potential of 22%
The iShares Global Industrials ETF (EXI) has a 6.24% weight in US airline companies and 5.26% in major US railroad companies.
Why a ‘buy’ for XPO
XPO Logistics has consolidated its position as a major road transporter across North America in the last three years. A strong demand for contract logistics, last-mile fulfillment, forwarding, and brokerage are supporting its double-digit revenue growth.
Booming e-commerce transactions are fueling the growing need for last-mile delivery, which is where XPO has built its position. Oppenheimer has maintained its “outperform” rating on XPO stock. Higher volumes, new business contracts, and a strong appetite for new acquisitions should maintain the upward pace in XPO stock.