Transportation stock C.H. Robinson broke out of a cup-with-handle pattern to start the new week and continued to advance within its buy zone on Tuesday. It has a rising relative strength line and trades well above its 50-day and 200-day moving averages. This Dow Jones Transportation Average component is today's IBD 50 Stocks to Watch pick.
This Prairie, Minn.-based freight hauler provides logistics to a variety of industries, including trucking firms and ocean shippers. Its services are in high demand as the economy struggles through supply-chain blockages that erupted during the pandemic and Russia-Ukraine conflict.
CHRW stock broke out past its buy point of 110.95 on Monday, posting average volume. The buy zone extends up to 116.50, but continued low volume on Tuesday adds some risk, so consider a small position size to start.
C.H. Robinson reported Q2 earnings of $2.67 per share on July 27, up 85% year over year. Sales grew 23% to $6.80 billion. EPS has grown 60%, 61% and 85% in the prior three quarters, showing bullish acceleration.
Analysts are looking for Q3 earnings of $2.16 per share on sales of $6.55 million when the company reports in late October.
Transportation Stock Rally Boosts Robinson
A rally in transportation stocks over the past month has also buoyed the uptrend. The S&P Transportation Sector ETF has gained 14.5% over the past month, vs. a 6.9% gain for the S&P 500.
C.H. Robinson is No. 1 in IBD's transportation and logistics group, according to IBD Stock Checkup. The group is ranked a strong No. 78 among 197 industry groups.
CHRW stock has solid fundamentals, as measured by IBD data analysis, with a 98 Composite Rating, 94 EPS Rating and 91 Relative Strength Rating.
The company just declared a quarterly cash dividend of 55 cents per share, payable on Oct. 3 to shareholders of record on Sept. 2. The annual dividend yield is 1.98%.
It has distributed uninterrupted dividends without decline for more than twenty years.
Follow Michael Molinski on Twitter @IMmolinski
