RXO Stock Is Up 70% in the Past Year and Can Lead the Charge in Last-Mile Delivery

• RXO (RXO) is an asset-light transportation provider with strong momentum.
• Shares are up more than 70% over the past year.
• RXO maintains a 100% “Buy” technical opinion from Barchart.
• Sentiment is mixed among analysts, but I see significant future potential in last-mile delivery and RXO’s strategic positioning.

Today’s Featured Stock

Valued at $4.8 billion, RXO (RXO) is a provider of asset-light transportation solutions. It offers tech-enabled truck brokerage services together with complementary solutions including managed transportation, freight forwarding, and last-mile delivery. 

What I’m Watching

I found today’s Chart of the Day by using Barchart’s powerful screening functions to sort for stocks with the highest technical buy signals; superior current momentum in both strength and direction, Weighted Alpha above 50+ and a 60-Month Beta over 1.5. I then used Barchart’s Flipcharts feature to review the charts for consistent price appreciation. RXO checks those boxes. The Trend Seeker issued a new “Buy” signal on May 19. Since then, the stock has gained 35.26%.

Barchart’s Technical Indicators for RXO

Editor’s Note: The technical indicators below are updated live during the session every 20 minutes and can therefore change each day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart.com website when you read this report. These technical indicators form the Barchart Opinion on a particular stock.

RXO scored a 1-year high of $29.89 on July 21.

• RXO has a Weighted Alpha of 98.95.
• RXO has a 100% “Buy” opinion from Barchart.
• The stock has gained 72.48% over the past 52 weeks.
• RXO has its Trend Seeker “Buy” signal intact.
• The stock recently traded at $28.69 with a 50-day moving average of $25.88.
• RXO has made 10 new highs and gained 10.69% over the past month.
• 60-month beta of 2.03.
• Relative Strength Index (RSI) is at 59.01.
• There’s a technical support level around $28.71.

Don’t Forget the Fundamentals

• $4.8 billion market capitalization.
• Revenue is projected to grow 10.55% this year and another 8.48% next year.
• Earnings are estimated to increase 271.73% this year and an additional 678.76% next year.

Analyst and Investor Sentiment on RXO

• The Wall Street analysts followed by Barchart give the stock 5 “Strong Buy, 14 “Hold,” and 2 “Strong Sell” opinions with price targets between $13 and $35.
• Value Line rates the stock “Above Average” with price targets from $9 to $39.
• CFRA’s MarketScope rates the stock a “Sell.”
• Morningstar thinks the stock is 13% undervalued with a fair value of $25.54.
• 2,020 investors are following the stock on Seeking Alpha, which rates it a “Strong Buy.”
• Short interest is 8.93% of the float with 6.97 days to cover the float.

The Bottom Line on RXO

Although opinions are mixed, I personally think there is a big future in last-mile delivery, and this company is positioned to provide that.

Additional disclosure: The Barchart Chart of the Day highlights stocks that are experiencing exceptional current price appreciation. They are not intended to be buy recommendations as these stocks are extremely volatile and speculative. Should you decide to add one of these stocks to your investment portfolio it is highly suggested you follow a predetermined diversification and moving stop loss discipline that is consistent with your personal investment risk tolerance.

On the date of publication, Jim Van Meerten did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.