Expeditors International: Challenges Ahead as Stock Struggles
Expeditors International of Washington, Inc. (EXPD), based in Seattle, Washington, boasts a market cap of $15.6 billion and stands out as a leader in global logistics and supply chain management. The company is recognized for using advanced technology and offering extensive services that connect businesses globally. This includes efficient transportation, freight forwarding, and distribution solutions across various industries.
Understanding Expeditors’ Market Position
With a valuation exceeding $10 billion, Expeditors fits the profile of a “large-cap stock.” The company’s significant impact in logistics and supply chain demonstrates its leadership in the field. Its innovative technology and extensive network enable Expeditors to provide streamlined transportation and distribution services to companies across different sectors.
Stock Performance Overview
Currently, shares of Expeditors are trading at a level that is 15.4% lower than their 52-week high of $131.59, which was achieved on September 30. In the last three months, the stock has experienced a 12.9% drop, notably underperforming compared to the Industrial Select Sector SPDR Fund (XLI), which saw only a slight decline during the same timeframe.
Over the past year, EXPD stock has fallen 13.3%, with a decline of 12.6% noted in the past six months. In contrast, the XLI has enjoyed growth of 17.8% over the last year and 10.3% over the past six months.
Moreover, EXPD has confirmed its sluggish performance by trading below both its 50-day and 200-day moving averages since December.
Competitive Challenges and Recent Performance
Expeditors International’s challenges are partly tied to limited investment in technology and automation. These factors have led to slower processing times and higher costs. As the market evolves, the company has struggled to keep pace with competitors who have embraced more advanced technology, resulting in a loss of market share.
Despite these challenges, shares of Expeditors International saw a modest increase of 1.4% after the company reported strong Q3 earnings on November 5. Revenue surged 37% year over year to reach $3 billion, surpassing analyst expectations by 21.3%. GAAP EPS was reported at $1.63, exceeding estimates by 22.1%. The company also noted an EBITDA of $327.1 million, beating the forecast by 31.4%.
Comparative Analysis with Rivals
Rival C.H. Robinson Worldwide, Inc. (CHRW), in contrast, has successfully outperformed EXPD. Over the course of 52 weeks, CHRW has experienced a notable increase, gaining 9.6%.
Considering EXPD’s disappointing stock performance, analysts hold a cautious view. The stock has received a “Moderate Sell” rating from 14 analysts, with a mean price target of $116.15, suggesting a potential upside of 4.4% from its current trading level.
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 details, please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
