Based on the current valuation metrics and market data, XPO appears to be fairly valued with some potential upside. The company's P/E ratio of 40.67 in Q4 2024 shows a moderate premium compared to industry standards, but this is supported by strong operational improvements and market position. The EV/EBITDA ratio of 15.53 indicates reasonable valuation considering the company's growth prospects and margin expansion.
Recent analyst consensus strongly supports this view, with multiple firms maintaining Buy ratings and price targets ranging from $155 to $170, suggesting an average upside potential of 11-14% from current levels. The company's Q4 2024 performance showed impressive margin expansion with adjusted EBITDA increasing 14.8% year-over-year to $303 million.
The stock's technical indicators suggest it has entered oversold territory with an RSI reading of 29.9, potentially presenting a buying opportunity at current levels. The company's strong operational execution and network investments position it well for the anticipated freight market recovery.
The current price of $144.01 in post-market trading represents a -1.69% decline, but this appears to be a short-term movement rather than a fundamental shift in value.