XPO Inc: Stock Value Surpasses Analyst Target, What’s Next?
In recent trading, shares of XPO Inc (Symbol: XPO) have crossed above the average analyst 12-month target price of $132.95, changing hands for $133.99/share. When a stock reaches an analyst’s target, they usually have two choices: either downgrade on valuation or adjust their target price higher. This choice might also depend on any recent positive business developments that could be driving the stock price up.
Analyst Targets Varied for XPO Inc
Within the Zacks coverage universe, there are 20 different analyst targets contributing to XPO Inc’s average price. However, this average is just a mathematical representation. For instance, one analyst has set a target as low as $85.00, while another is optimistic, placing a target as high as $160.00. The standard deviation among these targets is $14.908.
Investor Decisions: Higher Target or Time to Sell?
The reason to look at the average XPO price target is to harness the “wisdom of crowds,” combining the insights of various analysts rather than relying on a single expert’s opinion. With XPO now trading above the average target price of $132.95/share, investors are faced with an important question: Is $132.95 just a milestone on the way to an even higher target, or is the valuation stretched thin enough to warrant considering a sale? Below is a table showing the current perspective of analysts covering XPO Inc:
| Recent XPO Analyst Ratings Breakdown | ||||
|---|---|---|---|---|
| » | Current | 1 Month Ago | 2 Months Ago | 3 Months Ago |
| Strong buy ratings: | 17 | 16 | 15 | 15 |
| Buy ratings: | 1 | 1 | 1 | 1 |
| Hold ratings: | 2 | 2 | 2 | 2 |
| Sell ratings: | 0 | 0 | 0 | 0 |
| Strong sell ratings: | 1 | 1 | 1 | 1 |
| Average rating: | 1.4 | 1.42 | 1.44 | 1.44 |
The average rating presented in the last row of the table ranges from 1 to 5, with 1 indicating a Strong Buy and 5 indicating a Strong Sell. This article utilized data provided by Zacks Investment Research via Quandl.com. For the latest Zacks research report on XPO, access it for free.
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The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
