XP Inc. (NASDAQ:XP) is one of the stocks that are grabbing investor focus today: sinking -2.22% or (-0.92 points) to $40.44 from its previous close of $41.36. Does this decline mean it the best stock to buy right now? The shares seem to have an active trading volume day with a reported 216292 contracts so far this session. XP shares had a relatively better volume day versus average trading capacity of 2.37 million shares, but with a 0.16 billion float and a 7.99% run over a week, it’s definitely worth keeping an eye on. The one year price forecast for XP stock indicates that the average analyst price target is $164.74 per share. This means the stock has a potential increase of 307.37% from where the XP share price has been trading recently.
Looking at the current readings for XP Inc., the two-week RSI stands at 55.63. This figure suggests that XP stock, for now, is neutral, meaning that the shares are stable in terms of price movement. The stochastic readings, on the other hand, based on the current XP readings is similarly very revealing as it has a stochastic reading of 83.8% at this stage. This figure means that XP share price today is being oversold.
Technical chart claims that XP Inc. (XP) would settle between $42.34/share to $43.31/share level. However, if the stock price goes below the $40.1 mark, then the market for XP Inc. becomes much weaker. If that happens, the stock price might even plunge as low as $38.83 for its downside target. The stock is currently in the green zone of MACD, with the indicator reading 1.66. Traders are always alerted for the move of a stock above or below the zero line due to the fact that the reading is an indicator of the position of the short-term average relative to the long-term average. If the MACD is above the zero line, then the short-term average relative is above that of the long-term average, thus implying an upward momentum. Vice versa is the case if the MACD is below the zero line.
Analysts at Morgan Stanley, assumed coverage of XP assigning Overweight rating, according to their opinion released on January 06. JP Morgan, analysts launched coverage of XP Inc. (NASDAQ:XP) stock with a Neutral recommendation, according to their flash note issued to investors on January 06. Analysts at Goldman, made their first call for the equity with a Neutral recommendation, according to a research note that dated back to January 06.
XP equity has an average rating of –, with the figure leaning towards a bullish end. 8 analysts who tracked the company were contacted by Reuters. Amongst them, 5 rated the stock as a hold while the remaining 3 were split even though not equally. Some analysts rate the stock as a buy or a strong buy while no rated it as a sell. 3 analysts rated XP Inc. (NASDAQ:XP) as a buy or a strong buy while not a single analyst advised that investors should desist from purchasing the stock or sell them if they already own the company’s stock.
Moving on, XP stock price is currently trading at 73.07X forward 12-month Consensus EPS estimates, and its P/E ratio is 121.7 while for the average stock in the same group, the multiple is 13.3. XP Inc. current P/B ratio of 43.4 means it is trading at a premium against its industry’s 1.7.