We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Expeditors (EXPD) Shares Up 21.1% in 6 Months: Here's Why
Read MoreHide Full Article
Expeditors International of Washington, Inc.‘s (EXPD - Free Report) shares have gained 21.1% of value in the past six months compared with the industry’s 29.8% increase.
Reasons for Surge
Expeditors is being aided by uptick in airfreight revenues. Notably, revenues from its airfreight services segment increased 49% in the first nine months of 2020.
The coronavirus-induced cancellation of multiple passenger flights (that usually carry freight as well as passenger luggage) increased the usage of charters. Due to the coronavirus-induced imbalance between scheduled capacity and demand, the company is using charters to meet customer needs.
We are also encouraged by Expeditors’ sound balance sheet. As of Sep 30, 2020, the company had no long-term debt obligations. Moreover, Expeditors' current ratio, a measure of liquidity, has increased sequentially. This liquidity ratio measures a company's ability to pay short-term obligations. Expeditors' current ratio at the end of third-quarter 2020 was 2.28, higher than the second quarter reading of $2.22.
Favorable Estimate Revisions
Driven by surge in airfreight revenues, the Zacks Consensus Estimate for current-year bottom line has increased 5.5% to $3.82 per share in the past 60 days.
Zacks Rank & Other Stocks to Consider
Expeditors currently carries a Zacks Rank #2 (Buy).
Long-term expected earnings per share (three to five years) growth rate for Knight-Swift, FedEx and Herc Holdings is pegged at 15%, 12% and 6.5%, respectively.
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
Image: Shutterstock
Expeditors (EXPD) Shares Up 21.1% in 6 Months: Here's Why
Expeditors International of Washington, Inc.‘s (EXPD - Free Report) shares have gained 21.1% of value in the past six months compared with the industry’s 29.8% increase.
Reasons for Surge
Expeditors is being aided by uptick in airfreight revenues. Notably, revenues from its airfreight services segment increased 49% in the first nine months of 2020.
The coronavirus-induced cancellation of multiple passenger flights (that usually carry freight as well as passenger luggage) increased the usage of charters. Due to the coronavirus-induced imbalance between scheduled capacity and demand, the company is using charters to meet customer needs.
We are also encouraged by Expeditors’ sound balance sheet. As of Sep 30, 2020, the company had no long-term debt obligations. Moreover, Expeditors' current ratio, a measure of liquidity, has increased sequentially. This liquidity ratio measures a company's ability to pay short-term obligations. Expeditors' current ratio at the end of third-quarter 2020 was 2.28, higher than the second quarter reading of $2.22.
Favorable Estimate Revisions
Driven by surge in airfreight revenues, the Zacks Consensus Estimate for current-year bottom line has increased 5.5% to $3.82 per share in the past 60 days.
Zacks Rank & Other Stocks to Consider
Expeditors currently carries a Zacks Rank #2 (Buy).
Investors interested in the broader Zacks Transportation sector may also consider Knight-Swift Transportation Holdings (KNX - Free Report) , FedEx Corporation (FDX - Free Report) and Herc Holdings Inc. (HRI - Free Report) . All the stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term expected earnings per share (three to five years) growth rate for Knight-Swift, FedEx and Herc Holdings is pegged at 15%, 12% and 6.5%, respectively.
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>