C.H. Robinson Worldwide (CHRW) Gains But Lags Market: What You Should Know
C.H. Robinson Worldwide (CHRW) closed at $99.48 in the latest trading session, marking a +1.45% move from the prior day. This change lagged the S&P 500's 1.97% gain on the day. At the same time, the Dow added 1.88%, and the tech-heavy Nasdaq gained 0.24%.
Prior to today's trading, shares of the trucking company had lost 14.35% over the past month. This has was narrower than the Transportation sector's loss of 14.61% and lagged the S&P 500's loss of 9.93% in that time.
C.H. Robinson Worldwide will be looking to display strength as it nears its next earnings release. On that day, C.H. Robinson Worldwide is projected to report earnings of $2.14 per share, which would represent year-over-year growth of 15.68%. Meanwhile, our latest consensus estimate is calling for revenue of $6.43 billion, up 2.66% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $8.76 per share and revenue of $26.41 billion. These totals would mark changes of +38.83% and +14.33%, respectively, from last year.
Any recent changes to analyst estimates for C.H. Robinson Worldwide should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. C.H. Robinson Worldwide is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, C.H. Robinson Worldwide currently has a Forward P/E ratio of 11.19. This valuation marks a premium compared to its industry's average Forward P/E of 10.04.
It is also worth noting that CHRW currently has a PEG ratio of 1.24. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Transportation - Services was holding an average PEG ratio of 1.24 at yesterday's closing price.
The Transportation - Services industry is part of the Transportation sector. This group has a Zacks Industry Rank of 92, putting it in the top 37% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow CHRW in the coming trading sessions, be sure to utilize Zacks.com.
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