Validea Martin Zweig Strategy Daily Upgrade Report - 2/20/2025
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 20 2025
0mins
Should l Buy XP?
Source: NASDAQ.COM
XP Inc. Stock Upgrade: XP Inc. received an upgrade in its rating from 62% to 85% based on Martin Zweig's growth investor strategy, indicating strong interest due to its solid fundamentals and valuation.
Company Overview: XP Inc. is a Cayman Islands-based holding company that offers various financial services and educational platforms, including investment advisory and digital content, targeting both individual and institutional clients.
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Analyst Views on XP
Wall Street analysts forecast XP stock price to rise
3 Analyst Rating
2 Buy
1 Hold
0 Sell
Moderate Buy
Current: 19.770
Low
22.00
Averages
24.33
High
26.00
Current: 19.770
Low
22.00
Averages
24.33
High
26.00
About XP
XP Inc. is a Cayman Islands-based holding company. The Company owns technological platforms for investments, financial services and education, in addition to media and content platforms, including brands, such as XP, Rico, Clear, Infomoney, XPeed and IM+. It distributes a range of financial products and services, such as financial education and digital content platform, financial advisory services and open financial product platform. Xpeed is a financial education platform in Brazil, which offers courses, MBAs and learning tools, as well as a range of digital content. It advises and supports its customers in a range of activities related to the financial universe, such as advisory services for institutional clients, private banking for high income clients, international financial services, structuring and issuance of financial products for corporate clients and issuers. It offers an open financial product platform to its clients, encompassing both proprietary and partnership products.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
XP Reports Q4 2025 Earnings with Strong Growth Metrics
- Earnings Highlights: XP reported a Q4 2025 Non-GAAP EPS of R$2.56 with revenues of R$4.95 billion, reflecting a 10.2% year-over-year growth, indicating strong performance and enhanced profitability in the market.
- Client Asset Growth: Client assets totaled R$1.5 trillion in Q4 2025, up 16% year-over-year and 5% quarter-over-quarter, driven by R$94 billion in net inflows and R$111 billion in market appreciation, showcasing client trust and investment willingness in XP.
- Stable Retail Net Inflows: The net inflow for Q4 2025 was R$32 billion, with retail net inflows at R$20 billion, maintaining stability year-over-year and quarter-over-quarter, although the total retail net inflow for the year was R$94 billion, down 13% from 2024, reflecting increased market competition.
- Active Clients and Transaction Volume: XP had 4.8 million active clients in Q4 2025, a 2% increase year-over-year, remaining stable quarter-over-quarter, while total payment volume (TPV) reached R$14.6 billion, an 11% year-over-year growth, indicating ongoing growth in client base and transaction activity.
See More
XP to Announce Q4 Earnings on February 12
- Earnings Announcement: XP is set to release its Q4 earnings on February 12 after market close, with consensus EPS estimates at $0.48 and revenue expectations at $912.36 million, indicating investor interest in the company's financial performance.
- Earnings Estimate Fluctuations: Over the past three months, XP's EPS estimates have seen two upward and two downward revisions, while revenue estimates have faced four downward adjustments with no upward revisions, reflecting mixed market confidence in the company's future performance.
- Recovery in Fund Flows: In its Q3 report, XP indicated a significant acceleration in retail net new money inflows to BRL 20 billion per quarter, showcasing the company's success in attracting client funds, which may enhance its competitive position in the market.
- Stock Buyback Program: XP has announced a new R$1 billion stock buyback program along with dividend declarations, which not only aims to enhance shareholder returns but also potentially increases market attractiveness for the company's stock.
See More
IEMG ETF 52-Week Price Analysis
- Price Range Analysis: IEMG ETF's 52-week low is $47.29 per share, with a high of $74.699, and a recent trade at $74.17, indicating fluctuations near the high point that may influence investor buying decisions.
- Technical Analysis Tool: Comparing the current share price to the 200-day moving average provides valuable insights for investors, helping to assess market trends and potential buy or sell opportunities.
- ETF Unit Trading Mechanism: ETFs trade like stocks, where investors buy and sell 'units' that can be created or destroyed based on demand, impacting the ETF's liquidity and market performance.
- Inflows and Outflows Monitoring: Weekly monitoring of changes in shares outstanding helps identify significant inflows (new units created) or outflows (old units destroyed), which directly affect the ETF's underlying holdings and market dynamics.
See More
EWZ ETF 52-Week Price Analysis
- Price Range Analysis: The EWZ ETF's 52-week low is $23.05 per share, with a high of $38.875, while the last trade was at $37.75, indicating stability near the high point that may attract investor interest in price fluctuations.
- Technical Analysis Tool: Comparing the recent share price to the 200-day moving average can provide valuable insights for investors, helping to assess market trends and potential buy or sell opportunities.
- ETF Unit Trading Mechanism: ETFs trade similarly to stocks, where investors are buying and selling 'units' that can be created or destroyed based on investor demand, impacting the ETF's liquidity and market performance.
- Inflows and Outflows Monitoring: Weekly monitoring of changes in ETF shares outstanding helps identify those experiencing notable inflows (new units created) or outflows (old units destroyed), as these liquidity changes can significantly affect the performance of the underlying stocks held within the ETFs.
See More
Analysts Upgrade Agilent and Others, Target Price Set at $180
- Agilent Upgrade: HSBC analyst Sidharth Sahoo initiated coverage on Agilent Technologies Inc (NYSE:A) with a Buy rating and a price target of $180, indicating significant upside from Friday's close of $139.64, reflecting optimism about its future growth prospects.
- Group 1 Automotive Outlook: Evercore ISI Group analyst John Saager initiated coverage on Group 1 Automotive Inc (NYSE:GPI) with an Outperform rating and a price target of $500, suggesting potential upside from Friday's close of $395.06, indicating strong market confidence in its performance.
- Brinker International Potential: TD Cowen analyst Andrew M. Charles initiated coverage on Brinker International Inc (NYSE:EAT) with a Buy rating and a price target of $192, showing a clear increase from Friday's close of $157.68, reflecting a positive outlook on its future profitability.
- Clearwater Paper Stability: Truist Securities analyst Michael Roxland initiated coverage on Clearwater Paper Corp (NYSE:CLW) with a Hold rating and a price target of $21, slightly above Friday's close of $20.09, indicating a cautious market stance on its stability.
See More
Initial Week of XP Options Trading for August 2026
Put Contract Overview: The $12.00 put contract has a bid of 55 cents, allowing investors to buy shares at a cost basis of $11.45, which is a 26% discount from the current price of $16.15, with a 79% chance of expiring worthless, offering a potential 4.58% return on cash commitment.
Call Contract Overview: The $17.00 call contract has a bid of $1.85, enabling investors to sell shares at that price, which could yield a total return of 16.72% if exercised, while also having a 45% chance of expiring worthless, providing an 11.46% additional return if it does.
Volatility Insights: The implied volatility for the put contract is 66%, while for the call contract it is 63%, compared to an actual trailing twelve-month volatility of 42%.
YieldBoost Concept: Both put and call contracts offer potential YieldBoosts, with the put providing a 6.83% annualized return and the call offering a 17.07% annualized return if they expire worthless.
See More
XP Reports Q4 2025 Earnings with Strong Growth Metrics
- Earnings Highlights: XP reported a Q4 2025 Non-GAAP EPS of R$2.56 with revenues of R$4.95 billion, reflecting a 10.2% year-over-year growth, indicating strong performance and enhanced profitability in the market.
- Client Asset Growth: Client assets totaled R$1.5 trillion in Q4 2025, up 16% year-over-year and 5% quarter-over-quarter, driven by R$94 billion in net inflows and R$111 billion in market appreciation, showcasing client trust and investment willingness in XP.
- Stable Retail Net Inflows: The net inflow for Q4 2025 was R$32 billion, with retail net inflows at R$20 billion, maintaining stability year-over-year and quarter-over-quarter, although the total retail net inflow for the year was R$94 billion, down 13% from 2024, reflecting increased market competition.
- Active Clients and Transaction Volume: XP had 4.8 million active clients in Q4 2025, a 2% increase year-over-year, remaining stable quarter-over-quarter, while total payment volume (TPV) reached R$14.6 billion, an 11% year-over-year growth, indicating ongoing growth in client base and transaction activity.
See More
XP to Announce Q4 Earnings on February 12
- Earnings Announcement: XP is set to release its Q4 earnings on February 12 after market close, with consensus EPS estimates at $0.48 and revenue expectations at $912.36 million, indicating investor interest in the company's financial performance.
- Earnings Estimate Fluctuations: Over the past three months, XP's EPS estimates have seen two upward and two downward revisions, while revenue estimates have faced four downward adjustments with no upward revisions, reflecting mixed market confidence in the company's future performance.
- Recovery in Fund Flows: In its Q3 report, XP indicated a significant acceleration in retail net new money inflows to BRL 20 billion per quarter, showcasing the company's success in attracting client funds, which may enhance its competitive position in the market.
- Stock Buyback Program: XP has announced a new R$1 billion stock buyback program along with dividend declarations, which not only aims to enhance shareholder returns but also potentially increases market attractiveness for the company's stock.
See More
IEMG ETF 52-Week Price Analysis
- Price Range Analysis: IEMG ETF's 52-week low is $47.29 per share, with a high of $74.699, and a recent trade at $74.17, indicating fluctuations near the high point that may influence investor buying decisions.
- Technical Analysis Tool: Comparing the current share price to the 200-day moving average provides valuable insights for investors, helping to assess market trends and potential buy or sell opportunities.
- ETF Unit Trading Mechanism: ETFs trade like stocks, where investors buy and sell 'units' that can be created or destroyed based on demand, impacting the ETF's liquidity and market performance.
- Inflows and Outflows Monitoring: Weekly monitoring of changes in shares outstanding helps identify significant inflows (new units created) or outflows (old units destroyed), which directly affect the ETF's underlying holdings and market dynamics.
See More
EWZ ETF 52-Week Price Analysis
- Price Range Analysis: The EWZ ETF's 52-week low is $23.05 per share, with a high of $38.875, while the last trade was at $37.75, indicating stability near the high point that may attract investor interest in price fluctuations.
- Technical Analysis Tool: Comparing the recent share price to the 200-day moving average can provide valuable insights for investors, helping to assess market trends and potential buy or sell opportunities.
- ETF Unit Trading Mechanism: ETFs trade similarly to stocks, where investors are buying and selling 'units' that can be created or destroyed based on investor demand, impacting the ETF's liquidity and market performance.
- Inflows and Outflows Monitoring: Weekly monitoring of changes in ETF shares outstanding helps identify those experiencing notable inflows (new units created) or outflows (old units destroyed), as these liquidity changes can significantly affect the performance of the underlying stocks held within the ETFs.
See More
Analysts Upgrade Agilent and Others, Target Price Set at $180
- Agilent Upgrade: HSBC analyst Sidharth Sahoo initiated coverage on Agilent Technologies Inc (NYSE:A) with a Buy rating and a price target of $180, indicating significant upside from Friday's close of $139.64, reflecting optimism about its future growth prospects.
- Group 1 Automotive Outlook: Evercore ISI Group analyst John Saager initiated coverage on Group 1 Automotive Inc (NYSE:GPI) with an Outperform rating and a price target of $500, suggesting potential upside from Friday's close of $395.06, indicating strong market confidence in its performance.
- Brinker International Potential: TD Cowen analyst Andrew M. Charles initiated coverage on Brinker International Inc (NYSE:EAT) with a Buy rating and a price target of $192, showing a clear increase from Friday's close of $157.68, reflecting a positive outlook on its future profitability.
- Clearwater Paper Stability: Truist Securities analyst Michael Roxland initiated coverage on Clearwater Paper Corp (NYSE:CLW) with a Hold rating and a price target of $21, slightly above Friday's close of $20.09, indicating a cautious market stance on its stability.
See More
Initial Week of XP Options Trading for August 2026
Put Contract Overview: The $12.00 put contract has a bid of 55 cents, allowing investors to buy shares at a cost basis of $11.45, which is a 26% discount from the current price of $16.15, with a 79% chance of expiring worthless, offering a potential 4.58% return on cash commitment.
Call Contract Overview: The $17.00 call contract has a bid of $1.85, enabling investors to sell shares at that price, which could yield a total return of 16.72% if exercised, while also having a 45% chance of expiring worthless, providing an 11.46% additional return if it does.
Volatility Insights: The implied volatility for the put contract is 66%, while for the call contract it is 63%, compared to an actual trailing twelve-month volatility of 42%.
YieldBoost Concept: Both put and call contracts offer potential YieldBoosts, with the put providing a 6.83% annualized return and the call offering a 17.07% annualized return if they expire worthless.
See More
