C.H. Robinson Worldwide, Inc.CHRW continues to benefit from improving freight market conditions and strong investor-friendly measures.
Against this backdrop, let’s look at the factors that make this stock an attractive pick.
What Makes C.H. Robinson an Attractive Pick?
An Outperformer: A glimpse at the company’s price trend reveals that the stock has had an impressive run on the bourse over the past year. Shares of C.H. Robinson have gained 26% over the past year against the 12.6% decline of the industry it belongs to and an 8.8% drop of the Zacks S&P 500 composite.
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Solid Rank & VGM Score: C.H. Robinson currently carries a Zacks Rank #2 (Buy) and has a VGM Score of A. Our research shows that stocks with a VGM Score of A or B, when combined with a Zacks Rank #1 (Strong Buy) or 2, offer the best investment opportunities. Thus, the company seems to be an appropriate investment proposition at the moment. You can see the complete list of today’s Zacks #1 Rank stocks here.
Northward Estimate Revisions:The direction of estimate revisions serves as an important pointer regarding the price of a stock. Over the past 90 days, the Zacks Consensus Estimate for C.H. Robinson’s third-quarter 2022 earnings has moved up 23.6% year over year to $2.14. For the full-year 2022, the company’s earnings have increased 17.9% year over year.
Positive Earnings Surprise History: C.H. Robinson has an impressive earnings surprise history. The company delivered an earnings surprise of 24.2% in the last four quarters, on average.
Earnings Expectations: Earnings growth and stock price gains often indicate a company’s prospects. For third-quarter 2022, C.H. Robinson’s earnings are expected to register 15.7% growth. For the full-year 2022, the company’s earnings are expected to grow 38.8% year over year. The company has a long-term earnings growth rate of 9%.
Growth Factors: Improving freight market conditions are aiding C.H. Robinson. Strong segmental performances owing to higher pricing and volumes are driving the company’s top line. The series of acquisitions carried out by the company in recent years is also driving its growth.
The company’s measures to reward its shareholders through dividends and share buybacks are encouraging. C.H. Robinson returned $409.2 million to its shareholders in the second quarter of 2022 through a combination of cash dividends ($72.4 million) and share repurchases ($336.7 million).
Other Stocks to Consider
Some other top-ranked stocks from the broader Zacks Transportation sector are GATX Corporation GATX, Triton International Limited TRTN and Teekay Tankers Ltd. TNK, each currently carrying a Zacks Rank #2 (Buy).
GATX Corporation has an expected earnings growth rate of 17.8% for the current year. GATX delivered a trailing four-quarter earnings surprise of 28.9%, on average.
The Zacks Consensus Estimate for GATX’s current-year earnings has improved 2.1% over the past 90 days. Shares of GATX have gained 10.6% over the past year.
Triton has an expected earnings growth rate of 22.4% for the current year. TRTN delivered a trailing four-quarter earnings surprise of 7.5%, on average. TRTN has a long-term expected growth rate of 10%.
The Zacks Consensus Estimate for TRTN’s current-year earnings has improved 4.2% over the past 90 days. Shares of TRTN have increased 20.7% over the past year.
Teekay Tankers has an expected earnings growth rate of 140.1% for the current year. TNK delivered a trailing four-quarter earnings surprise of 46.1%, on average. TNK has a long-term expected growth rate of 3%.
The Zacks Consensus Estimate for TNK’s current-year earnings has improved more than 100% over the past 90 days. Shares of TNK have soared 122.5% over the past year.
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C.H. Robinson Worldwide, Inc. (CHRW) : Free Stock Analysis Report
Teekay Tankers Ltd. (TNK) : Free Stock Analysis Report
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