RXO doubled this year. BMO Capital Markets says it will keep going up because earnings are strong and the trucking market is tightening. This is what passes for analysis when you charge institutional clients forty grand a year for research.
The stock went from some price to double that price. BMO looked at this information. They concluded more doubling could occur. They wrote this down. They sent it to people who manage billions of dollars. Those people nodded and said thank you.
Here's what happened. A truck company's shares increased in value. BMO analysts noticed the increase. They checked if bad things were happening to the company. Bad things were not happening. They published a note saying the stock might continue not going down. Retail traders read this note six hours after institutions already traded on it. They bought at the top. They will call their brother-in-law in three months asking if bankruptcy means they get their money back.
The trucking market is tightening, which means good things for trucking companies apparently. This would be useful information if you could travel backward in time to when RXO hadn't already doubled. You cannot travel backward in time. You can only read about what already happened and convince yourself you would have known it was going to happen.
BMO says RXO has room to run. They did not specify how much room. They did not specify how fast it would run. They did not specify if it might trip and fall down the stairs. They said room to run and collected their fee.
Every stock that doubles gets an analyst note explaining why it will double again. Every stock that gets cut in half gets an analyst note explaining why it's now a buying opportunity. The notes arrive after the move. They always do. That's not analysis. That's a police report.
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