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RXO (RXO) Is Up 8.3% After Improved Results and Insider Buying - What's Changed

Simply Wall St · 2d ago
  • RXO, Inc. recently reported quarterly results that showed stronger revenue and a much smaller GAAP loss than a year earlier, and held a follow-up conference call to discuss performance.
  • Analysts highlighted that these operational gains, combined with recent insider share purchases, have improved confidence in RXO’s progress even as they continue to flag margin pressures and freight market headwinds.
  • Now we will examine how RXO’s improved quarterly performance and insider buying affect the company’s existing investment narrative and risk balance.

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RXO Investment Narrative Recap

To own RXO, you need to believe its asset light brokerage model can translate improving operating trends into a path toward sustainable profitability despite a soft freight backdrop. The latest quarter’s stronger revenue and reduced GAAP loss help the story, but they do not remove the near term risk that freight demand and pricing remain weak, which still looks like the key swing factor for results and sentiment.

The upcoming Q4 2025 earnings release and conference call on 6 February 2026 now become the next important checkpoint, giving investors fresh detail on margins, freight mix and management’s read on market conditions. How management frames the freight market headwinds and progress in higher value verticals on that call will likely matter more for RXO’s near term risk reward than the headline improvement in the most recent quarter alone.

Yet investors also need to be aware that RXO’s exposure to a soft freight environment could still...

Read the full narrative on RXO (it's free!)

RXO's narrative projects $6.9 billion revenue and $132.5 million earnings by 2028. This requires 7.3% yearly revenue growth and about a $440.5 million earnings increase from $-308.0 million today.

Uncover how RXO's forecasts yield a $15.65 fair value, a 14% upside to its current price.

Exploring Other Perspectives

RXO 1-Year Stock Price Chart
RXO 1-Year Stock Price Chart

Three Simply Wall St Community fair value estimates for RXO range from US$15.65 to US$32.01, underlining how far opinions can spread. You should weigh that diversity against the ongoing freight market softness that still hangs over RXO’s ability to translate recent operational progress into more resilient earnings, and consider several viewpoints before deciding where you stand.

Explore 3 other fair value estimates on RXO - why the stock might be worth over 2x more than the current price!

Build Your Own RXO Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

  • A great starting point for your RXO research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.
  • Our free RXO research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate RXO's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.