Digging Up the Facts on XPO Logistics, Inc. (XPO)

XPO Logistics, Inc. (NYSE:XPO) is an interesting player in the Services space, with a focus on Air Delivery & Freight Services. The stock has been active on the tape, currently trading at $43.92, up from yesterday’s close by 0.62%. Given the stock’s recent action, it seemed like a good time to take a closer look at the company’s recent data.

Fundamental Analysis

It’s important to get a feel for how any stock is actually valued on the market based on its core numbers. XPO Logistics, Inc. (XPO) currently trades with a market capitalization of $4.87B. That value represents a market adjusting for revenues that have been growing by 57.20% on a quarterly year/year basis as of the company’s last quarterly report.

The balance sheet health of any company plays a key role in its ability to meet its obligations and maintain the faith of its investment base. For XPO, the company currently has $360.30M of cash on the books, which is offset by $5.45B current liabilities. You can get a sense of how sustainable that is by a levered free cash flow of $249.81M over the past twelve months. Generally speaking, earnings are expected to fall in coming quarters. Analysts are forecasting earnings of 0.21 on a per share basis this quarter. Perhaps, that suggests something about why 92.30% of the outstanding share supply is held by institutional investors.

Technical Analysis

As most professionals know, technical analysis can offer critical insights into what smart money and insiders think about a stock’s prospects going forward. Looking at the stock’s movement on the chart, XPO Logistics, Inc. recorded a 52-week high of 49.86. It is now trading 6.21 off that level. The stock is trading 45.09 its 50-day moving average by 1.44. The stock carved out a 52-week low down at 18.04.

In recent action, XPO Logistics, Inc. (XPO) has made a move of -6.67% over the past month, which has come on weak relative transaction volume. Over the trailing year, the stock is underperforming the S&P 500 by 92.16, and it’s gotten there by action that has been more volatile on a day-to-day basis than most other stocks on the exchange. In terms of the mechanics underlying that movement, traders will want to note that the stock is trading on a float of 92.48M with 15.15% sitting short, betting on future declines. That suggests something of the likelihood of a short squeeze in shares of XPO.

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