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Attractive stocks have exceptional fundamentals. In the case of XPO Logistics, Inc. (NYSE:XPO), there’s is a company with a excellent future outlook, which has not yet been priced into the stock. Below is a brief commentary on these key aspects. For those interested in understanding where the figures come from and want to see the analysis, read the full report on XPO Logistics here.
Very undervalued with reasonable growth potential
XPO is an attractive stock for growth-seeking investors, with an expected earnings growth of 21% in the upcoming year underlying the notable 20% return on equity over the next few years leading up to 2022. XPO’s shares are now trading at a price below its true value based on its discounted cash flows, indicating a relatively pessimistic market sentiment. Investors have the opportunity to buy into the stock to reap capital gains, if XPO’s projected earnings trajectory does follow analyst consensus growth, which determines my intrinsic value of the company. Also, relative to the rest of its peers with similar levels of earnings, XPO’s share price is trading below the group’s average. This further reaffirms that XPO is potentially undervalued.
For XPO Logistics, there are three key aspects you should further research:
- Historical Performance: What has XPO’s returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
- Financial Health: Does it have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of XPO? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.