Xero (ASX:XRO) 3-1 Month Momentum %: -9.03% (As of Jul. 19, 2026)

Author: Vera Yuan Vera Yuan
Vera Yuan
Vera Yuan
Director of Data and Quant Analytics at GuruFocus
Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
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Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

ASX:XRO Xero Ltd ASX:XRO
73 GF Score
Price A$69.72
GF Value A$199.50
Valuation Possible Value Trap
! 7 Warning Signs
View Full Analysis

What is Xero 3-1 Month Momentum %?

Xero ASX:XRO +0.93% 73 3-1 Month Momentum % is -9.03% as of Jul. 19, 2026. GuruFocus rates ASX:XRO with a GF Score™ of 73/100 and a GF Value™ of A$199.50 (Possible Value Trap). The stock has 7 warning signs investors should review. Among 2,834 Software companies, Xero ranks worse than 52.58% on this metric.

3-1 Month Momentum % is the total return of the stock from 3-month ago to 1-month ago. As of today (2026-07-19), Xero's 3-1 Month Momentum % is -9.03%.

The industry rank for Xero's 3-1 Month Momentum % or its related term are showing as below:

ASX:XRO's 3-1 Month Momentum % is ranked worse than
52.58% of 2834 companies
in the Software industry
Industry Median: -8.055 vs ASX:XRO: -9.03

Xero  (ASX:XRO) 3-1 Month Momentum % Explanation

Momentum investing is a trading strategy in which investors buy securities that are rising and sell before the prices start to go back down. The 3-1 Month Momentum % measures the total return to a stock over the past three months, but ignores the previous month.

The reason why the most recent month’s return dropped related to the short-term reversal effect associated with momentum. There is an academic finding that short-term momentum actually has a reversal effect, whereby the previous winners (measured over the past months) do poorly the next month, while the previous losers do well the next month. In order to eliminate the short-term reversal effect, the previous month return was not included in this calculation.


Xero 3-1 Month Momentum % Related Terms


ASX:XRO vs UBER, SHOP, CRM: 3-1 Month Momentum % Comparison

For the Software - Application subindustry, Xero's 3-1 Month Momentum %, along with its competitors' market caps and 3-1 Month Momentum % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Xero 3-1 Month Momentum % vs Software Industry

For the Software industry and Technology sector, Xero's 3-1 Month Momentum % distribution charts can be found below:

* The bar in red indicates where Xero's 3-1 Month Momentum % falls into.


ASX:XRO
73GF Score
Xero Ltd ASX:XRO
3-1 Month Momentum % is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Xero  (ASX:XRO) 3-1 Month Momentum % Calculation

3-1 Month Momentum % is calculated as following:

3-1 Month Momentum %=( Price 1-month ago / Price 3-month ago - 1 ) * 100 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Frequently Asked Questions Learn more about 3-1 Month Momentum % →
What does a 3-1 Month Momentum % of -9.03% mean?
Xero (ASX:XRO) has a 3-1 Month Momentum % of -9.03% as of Jul. 19, 2026. 3-1 Month Momentum measures the total return of the stock from 3-month ago to 1-month ago. View historical data on Xero and its competitors. According to the industry distribution chart, Xero ranks #1490 out of 2834 companies in the Software industry, placing it in the top 52.6%.
Is Xero's 3-1 Month Momentum % too high?
Xero's current 3-1 Month Momentum % is -9.03%. Based on the distribution chart, Xero ranks #1490 out of 2834 companies in the Software industry, which is below the industry midpoint. Overall, Xero has a GF Score™ of 73/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Xero's 3-1 Month Momentum % compare to UBER and SHOP?
According to the Software industry distribution chart, Xero ranks #1490 out of 2834 companies for 3-1 Month Momentum %. This places Xero in the lower half of its industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 3-1 Month Momentum % for a Software company?
A good 3-1 Month Momentum % depends on the Software industry context. However, 3-1 Month Momentum % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high 3-1 Month Momentum % mean?
A high 3-1 Month Momentum % can signal that a stock is expensive relative to its fundamentals. 3-1 Month Momentum measures the total return of the stock from 3-month ago to 1-month ago. View historical data on Xero and its competitors. Xero's current 3-1 Month Momentum % is -9.03%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Xero stock overvalued right now?
Based on GuruFocus' analysis, Xero (ASX:XRO) is currently considered Possible Value Trap. The stock's GF Value™ is A$199.50, compared to a current price of A$69.72 — trading 65.1% below its estimated fair value. The current 3-1 Month Momentum % is -9.03%. Xero's overall GF Score™ is 73/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 3-1 Month Momentum % calculated?
3-1 Month Momentum % is calculated from a company's financial statements. For Xero (ASX:XRO), the current 3-1 Month Momentum % is -9.03% as of Jul. 19, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Xero (ASX:XRO) Overvalued in 2026?

Based on GuruFocus' analysis, Xero stock appears to be undervalued. The current stock price of A$69.72 is trading 65.1% below its estimated GF Value™ of A$199.50. GuruFocus considers Xero to be Possible Value Trap.

Key valuation signals for ASX:XRO:

  • 3-1 Month Momentum %: -9.03%
  • GF Value™: A$199.50 vs. price of A$69.72 (65.1% below fair value)
  • GF Score™: 73/100 with 7 warning signs

No single metric tells the full story. See the ASX:XRO stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Xero Business Description

Other Exchanges XROLF:USA0XE:Germany
Address 19-23 Taranaki Street, Te Aro, Wellington, NTL, NZL, 6011
Xero is a technology company originating from New Zealand, providing cloud-based accounting software, primarily for small and midsized enterprises, or SMEs, and accounting practices. As a first mover in the space for cloud-based accounting software, Xero has grown quickly to achieve dominant market share in New Zealand and Australia, displacing legacy providers. Xero has also expanded beyond its home region toward other English-speaking countries, primarily the UK and the US.
73GF Score

Get the complete analysis for ASX:XRO

3-1 Month Momentum % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

A$69.72
Price
A$199.50
GF Value