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Why Expeditors (EXPD) Stock Should Grace Your Portfolio Now
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Expeditors International of Washington (EXPD - Free Report) has been on a tear for some time with its shares displaying an uptrend despite the coronavirus-led challenging scenario. The stock has rallied 32.3% year to date, outperforming its industry’s 1.5% growth in the same time frame.
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Let’s look into the factors working in favor of the stock.
Northbound Earnings Estimates: The Zacks Consensus Estimate for current-year earnings has been revised 9.7% upward over the past 60 days. For 2022, the consensus mark for the metric has moved 10.6% north in the same time frame. Such favorable estimate revisions reflect brokers’ confidence in the stock.
Given the sea of information at the brokers’ disposal, investors should best be guided by their expert advice and the direction of their estimate revisions. This is because the same serves as a key indicator in determining the price of a stock.
Solid Industry Rank: The industry to which Expeditors belongs currently has a Zacks Industry Rank of 64 (of 250 plus groups). Such a solid rank places EXPD 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.
In fact, 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 Tailwinds: Increased airfreight revenues aid Expeditors in this coronavirus-ravaged scenario. Evidently, the metric increased approximately 54% year over year in the first nine months of 2021. We are also encouraged by EXPD’s measures to reward its shareholders through dividends and buybacks.
During the first nine months of 2021, Expeditors repurchased two million shares at an average price of $110.45 per share. Moreover, in May 2021, EXPD announced an 11.5% hike in semi-annual cash dividend, taking the total to 58 cents per share.
Other Key Picks
Here are some other top-ranked stocks within the broader Transportation sector:
Schneider National (SNDR - Free Report) currently flaunts a Zacks Rank of 1. SNDR has a stellar earnings surprise history. Its bottom line outperformed the Zacks Consensus Estimate in each of the preceding four quarters, the average being 21%.
Shares of Schneider National have rallied more than 19% so far this year. SNDR gets a boost from its strong Intermodal and Logistics units. The Intermodal segment is benefiting from yield management and increased volumes. The Logistics unit is thriving on the back of favorable market conditions and other factors.
Matson (MATX - Free Report) : This Honolulu, Hawaii-based provider of ocean transportation and logistics services is presently Zacks #1 Ranked. Over the past 60 days, the stock has seen the Zacks Consensus Estimate for 2021 move 16.4% north. The stock has gained 42.6% year to date.
Matson is benefiting from the uptick in freight demand in the United States. MATX’s shareholder-friendly attitude and cost-management actions are also appreciative. Based on the improving business conditions, we expect MATX to perform well in the fourth quarter of 2021.
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Why Expeditors (EXPD) Stock Should Grace Your Portfolio Now
Expeditors International of Washington (EXPD - Free Report) has been on a tear for some time with its shares displaying an uptrend despite the coronavirus-led challenging scenario. The stock has rallied 32.3% year to date, outperforming its industry’s 1.5% growth in the same time frame.
Let’s look into the factors working in favor of the stock.
Northbound Earnings Estimates: The Zacks Consensus Estimate for current-year earnings has been revised 9.7% upward over the past 60 days. For 2022, the consensus mark for the metric has moved 10.6% north in the same time frame. Such favorable estimate revisions reflect brokers’ confidence in the stock.
Given the sea of information at the brokers’ disposal, investors should best be guided by their expert advice and the direction of their estimate revisions. This is because the same serves as a key indicator in determining the price of a stock.
Top Zacks Rank & Impressive Momentum Score: The stock currently sports a Zacks Rank #1 (Strong Buy) and a Momentum Score of A, which further highlights its short-term attractiveness. You can see the complete list of today’s Zacks #1 Rank stocks here.
Solid Industry Rank: The industry to which Expeditors belongs currently has a Zacks Industry Rank of 64 (of 250 plus groups). Such a solid rank places EXPD 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.
In fact, 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 Tailwinds: Increased airfreight revenues aid Expeditors in this coronavirus-ravaged scenario. Evidently, the metric increased approximately 54% year over year in the first nine months of 2021. We are also encouraged by EXPD’s measures to reward its shareholders through dividends and buybacks.
During the first nine months of 2021, Expeditors repurchased two million shares at an average price of $110.45 per share. Moreover, in May 2021, EXPD announced an 11.5% hike in semi-annual cash dividend, taking the total to 58 cents per share.
Other Key Picks
Here are some other top-ranked stocks within the broader Transportation sector:
Schneider National (SNDR - Free Report) currently flaunts a Zacks Rank of 1. SNDR has a stellar earnings surprise history. Its bottom line outperformed the Zacks Consensus Estimate in each of the preceding four quarters, the average being 21%.
Shares of Schneider National have rallied more than 19% so far this year. SNDR gets a boost from its strong Intermodal and Logistics units. The Intermodal segment is benefiting from yield management and increased volumes. The Logistics unit is thriving on the back of favorable market conditions and other factors.
Matson (MATX - Free Report) : This Honolulu, Hawaii-based provider of ocean transportation and logistics services is presently Zacks #1 Ranked. Over the past 60 days, the stock has seen the Zacks Consensus Estimate for 2021 move 16.4% north. The stock has gained 42.6% year to date.
Matson is benefiting from the uptick in freight demand in the United States. MATX’s shareholder-friendly attitude and cost-management actions are also appreciative. Based on the improving business conditions, we expect MATX to perform well in the fourth quarter of 2021.