C.H. Robinson (CHRW) Up 23.9% in the Past Year: Here's Why
C.H. Robinson Worldwide, Inc. CHRW shares have surged 23.9% in the past year compared with the industry’s 37.1% increase.
Image Source: Zacks Investment Research
Reasons for Surge
We are impressed by C.H. Robinson's growth-by-acquisition policy. In May, the company acquired freight forwarding company Combinex Holding B.V. to strengthen its European Surface Transportation business. The acquisition not only broadens its customer base but also improves customer services by clubbing Combinex’s expertise. In March 2020, the company acquired Prime Distribution Services, a provider of consolidation services in North America, from Roadrunner Transportation. The company’s NAST business is benefiting from the buyout through expanded capabilities.
Significant cost savings generated by the company are encouraging. In first-quarter 2021, the company generated $90 million of long-term cost savings and expects to achieve the remaining $10 million by the end of the second quarter. In the second half of 2021, the company hopes to continue delivering long-term cost savings through process redesign and automation across the enterprise.
Favorable Estimate Revisions
Driven by the above tailwinds, the Zacks Consensus Estimate for current-year earnings has increased 14.2% to $4.99 per share in the past 60 days.
Zacks Rank & Other Stocks to Consider
C.H. Robinson currently sports a Zacks Rank #1 (Strong Buy).
Investors interested in the broader Zacks Transportation sector can also consider stocks like Landstar System, Inc. LSTR, Triton International Limited TRTN and Herc Holdings Inc. HRI. Herc Holdings sports a Zacks Rank #1, while Triton and Landstar carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term (three to five years) expected earnings per share growth rate for Landstar, Triton and Herc Holdings is projected at 12%, 10% and 42.9%, respectively.
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C.H. Robinson Worldwide, Inc. (CHRW) : Free Stock Analysis Report
Landstar System, Inc. (LSTR) : Free Stock Analysis Report
Herc Holdings Inc. (HRI) : Free Stock Analysis Report
Triton International Limited (TRTN) : Free Stock Analysis Report
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