Why C.H. Robinson (CHRW) Stock Should Grace Your Portfolio
C.H. Robinson's (CHRW) efforts to reward its shareholders are very commendable.
Shares of C.H. Robinson Worldwide CHRW have been performing well of late, gaining 7.3% over the past six months. Evidently, the stock has outperformed its industry’s 3.7% growth in the same time period.
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Let’s look into the factors working in favor of this currently Zacks Rank #2 (Buy) stock. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Northward Earnings Estimates: The Zacks Consensus Estimate for current-quarter earnings has been revised 27.5% upward over the past 60 days. For 2022, the consensus mark for earnings has moved 16% north in the same time frame. The favorable estimate revisions reflect brokers’ confidence in the stock.
Given the wealth of information at their disposal, it is in the best interest of investors to be guided by the brokers' advice and the direction of their estimate revisions. This is because the direction of estimate revisions serves as an important pointer when ascertaining the stock price.
Impressive Revenue Growth Amid Pandemic: The Zacks Consensus Estimate for current-quarter revenues is pegged at $6.06 billion, suggesting 33.2% growth from the year-ago quarter’s reported figure. Similarly, the consensus mark for current-year revenues stands at $22.72 billion, hinting at a 40.18% increase from the prior-year reported figure.
C.H. Robinson’s Momentum Score of A further highlights its short-term attractiveness.
Solid Industry Rank: The industry to which C.H. Robinson belongs, currently has a Zacks Industry Rank of 63 (of 250 plus groups). Such a solid rank places CHRW in the top 25% of the Zacks industries. Studies show that 50% of a stock price movement is directly related to the performance of the industry group it hails from.
An ordinary stock within a strong group is likely to outshine a robust stock in a weak industry. Therefore, taking the industry’s performance into account becomes imperative.
Other Bullish Factors: C.H. Robinson’s efforts to reward its shareholders are encouraging. Highlighting its financial prosperity, in December 2021, CHRW raised its quarterly cash dividend to 55 cents per share (annually: $2.20) from 51 cents. The new dividend will be paid out on Jan 3, 2022, to its shareholders of record as of Dec 13, 2021. CHRW’s board also expanded its share repurchase authorization by additional 20 million shares. Moreover, improving freight market conditions are aiding CHRW.
Other Stocks Worth a Look
The long-term expected earnings per share (three to five years) growth rate for J.B. Hunt is pegged at 15%. JBHT is benefiting from strong segmental performances. While the Dedicated Contract Services unit is being aided mainly by an improved fleet productivity, the Integrated Capacity Solutions unit is gaining from a favorable customer freight mix as well as higher contractual and spot rates.
JBHT’s measures to reward its shareholders are encouraging. Driven by the tailwinds, the stock has increased 41.7% in the past year. J.B. Hunt currently carries a Zacks Rank #2.
The long-term expected earnings per share (three to five years) growth rate for Landstar is pegged at 12%. LSTR is benefiting from the gradual recovery in economy and freight market conditions in the United States.
LSTR’s top and bottom lines have increased substantially since the third quarter of 2020 owing to robust revenues in its primary segment truck transportation. LSTR has surged 25.3% in the past year. Landstar sports a Zacks Rank #1, presently.
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C.H. Robinson Worldwide, Inc. (CHRW): Free Stock Analysis Report
J.B. Hunt Transport Services, Inc. (JBHT): Free Stock Analysis Report
Landstar System, Inc. (LSTR): Free Stock Analysis Report
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