XP is Monday's selection for IBD 50 Stocks To Watch as shares of the investment management company find support at their 50-day moving average. XP stock is in a consolidation with a buy point of 27.71, according to IBD MarketSmith.
Shares of XP rose in strong volume on Nov. 14 and retook the 50-day line after third-quarter results showed accelerating sales growth for a second straight quarter. Sales grew 23% to $821.1 million while earnings of 42 cents a share climbed 15% from the prior-year quarter.
The company also announced a cash dividend of 73 cents a share payable to shareholders on record as of Dec. 13.
Wall Street sees earnings of $1.78 per share in 2024 for XP. That represents a 23% increase from prior estimates for the 2023 fiscal year, which ends Dec. 31.
XP Stock Ranks First In Group
The so-called "Secret Robinhood" of Brazil provides low-cost investment management services for retail, high net worth and institutional clients. The nickname refers to Robinhood, a pioneer in commission-free stock trading.
XP hosts a financial products platform for equities, fixed income, mutual funds, life insurance, pension plans and real estate investment funds. The company has expanded its offerings through a series of acquisitions such as Rico, which offers a low-fee brokerage platform, as well as Vista Capital, an equity and hedge fund management company.
The stock was listed on the Nasdaq composite exactly four years ago, on Dec. 11, 2019, with its initial public offering at 27. Shares popped on the first day of trading and reached an all time high 53.08 in September 2021.
XP stock has risen 53% so far this year, more than double the S&P 500's 20% gain.
Ranks First In Its Group
XP ranks first in Investor's Business Daily's finance-investment banks and brokers group. More funds have been net buyers of the stock over the last two quarters, giving XP stock a grade of B+ on accumulation and distribution from IBD.
Exchange traded funds hold shares of the financial services company as well. The First Trust Brazil Alphadex ETF and the iShares U.S. Financials ETF hold shares of XP.
XP stock has a near ideal Composite Rating of 96 and EPS Rating of 96 as well. The Relative Strength Rating of 94 also shows it has performed better than 94% of stocks in the IBD database.
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