XPO (XPO) Surges 15.4%: Is This an Indication of Further Gains?

XPO (XPO) shares soared 15.4% in the last trading session to close at $105.56. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 14.7% loss over the past four weeks.

The stock gained following President Donald Trump's announcement of a 90-day pause on most of the sweeping tariffs that were hurting the market recently.

This freight management company is expected to post quarterly earnings of $0.66 per share in its upcoming report, which represents a year-over-year change of -18.5%. Revenues are expected to be $1.98 billion, down 1.9% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

For XPO, the consensus EPS estimate for the quarter has been revised 2.8% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on XPO going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

XPO is part of the Zacks Transportation - Truck industry. JB Hunt (JBHT), another stock in the same industry, closed the last trading session 9.4% higher at $141.65. JBHT has returned -16% in the past month.

For JB Hunt

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This article originally published on Zacks Investment Research (zacks.com).

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