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Based in Eden Prairie, Minnesota, C.H. Robinson Worldwide, Inc. (CHRW) provides freight transportation and related logistics and supply chain services. Valued at a market cap of $12.5 billion, the company also distributes and markets fresh fruits, vegetables, and other value-added perishable items under the Robinson Fresh brand name.
Companies worth $10 billion or more are generally described as “large-cap” stocks, and C.H. Robinson fits right into that category. The company operates with over 300 offices and more than 15,000 workers and distinguishes itself as one of the world's largest logistics platforms, with $22 billion in freight under management and 19 million shipments annually.
Shares of CHRW are trading slightly below their 52-week high of $108.21, which they hit on Sep. 24, and have gained 22.1% over the past three months, surpassing the broader Dow Jones Industrials Average’s ($DOWI) 7.2% return over the same time frame.
In the longer term, CHRW stock is up 25% on a YTD basis, outpacing DOWI’s 12.1% gains. Moreover, shares of CHRW have gained 25.7% over the past 52 weeks, surpassing DOWI’s 24.4% returns over the same time frame.
To confirm its bullish trend, CHRW has been trading above its 200-day moving average since mid-May and has remained above its 50-day moving average since early May.
Shares of CHRW gained 14.8% following its Q2 earnings release on Jul. 31. The company reported adjusted earnings of $1.15 per share, which surpassed the Wall Street estimates of 95 cents and improved 27.7% year over year. Its revenues of $4.48 billion in the period matched the Street forecasts. The company showed notable margin improvement in the quarter due to implementing its new, cost-efficient operating model.
CHRW’s outperformance becomes more evident compared to its rival, Expeditors International of Washington, Inc. (EXPD), which gained 11.6% over the past 52 weeks and declined marginally on a YTD basis.
Despite CHRW’s recent outperformance relative to the broader market, analysts remain cautious about its prospects. The stock has a consensus rating of “Hold” from 23 analysts in coverage, and as of writing, the stock is trading above its mean price target of $97.85.
On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
