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.
Why C.H. Robinson (CHRW) Stock Should Grace Your Portfolio
Read MoreHide Full Article
Shares of C.H. Robinson Worldwide (CHRW - Free Report) 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.
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.
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.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Why C.H. Robinson (CHRW) Stock Should Grace Your Portfolio
Shares of C.H. Robinson Worldwide (CHRW - Free Report) 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.
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
Investors interested in the Zacks Transportation sector may also consider J.B. Hunt Transport Services (JBHT - Free Report) and Landstar System (LSTR - Free Report) .
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.