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Here's Why Investors Should Avoid C.H. Robinson (CHRW) Now
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C.H. Robinson (CHRW - Free Report) is currently grappling with a host of intricate challenges, a scenario that we believe has significantly diminished its attractiveness as an investment opportunity.
Let’s delve deeper.
Southward Earnings Estimate Revision: The Zacks Consensus Estimate for current-quarter earnings has been revised 22.6% downward over the past 60 days. For the current year, the consensus mark for earnings has moved 13.4% south in the same time frame. The unfavorable estimate revisions indicate brokers’ lack of confidence in the stock.
Weak Zacks Rank and Style Score: CHRW currently carries a Zacks Rank #5 (Strong Sell). Moreover, the company’s current Value Score of D shows its unattractiveness.
Unimpressive Price Performance: CHRW shares have lost 14.4% over the past 60 days compared with its industry’s 6.4% decline.
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Other Headwinds: C.H. Robinson’s top line gets unfavorably impacted due to lower pricing in ocean and truckload services. Soft freight market continues to remain a woe. Overall weak demand, high inventories and excess capacity lead to a more competitive marketplace and subdued transportation rates. The company’s focus on making investments in technology, though aimed at long-term growth prospects, might weigh on its bottom line in the near term.
Bearish Industry Rank: The industry to which CHRW belongs currently has a Zacks Industry Rank of 229 (250 plus groups). Such an unfavorable rank places CHRW in the bottom 9% of Zacks Industries. Studies show that 50% of a stock price movement is directly related to the performance of the industry group it belongs to.
A mediocre stock within a strong group is likely to outclass a robust stock in a weak industry. Therefore, reckoning the industry’s performance becomes imperative.
GATX has an encouraging track record with respect to earnings surprise, having surpassed the Zacks Consensus Estimate in three of the last four quarters and missing the mark in the remaining one. The average beat is 16.47%.
The Zacks Consensus Estimate for 2024 earnings has been revised 9% upward over the past 90 days. The company has an expected earnings growth rate of 6.5% for 2024. Shares of GATX have rallied 24.2% in the past year.
SkyWest's fleet modernization efforts are commendable. The Zacks Consensus Estimate for SKYW’s 2024 earnings has improved 26% over the past 90 days. Shares of SkyWest have surged 261% in the past year.
SKYW has an expected earnings growth rate of more than 100% for 2024. The company delivered a trailing four-quarter earnings surprise of 128.02%, on average.
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Here's Why Investors Should Avoid C.H. Robinson (CHRW) Now
C.H. Robinson (CHRW - Free Report) is currently grappling with a host of intricate challenges, a scenario that we believe has significantly diminished its attractiveness as an investment opportunity.
Let’s delve deeper.
Southward Earnings Estimate Revision: The Zacks Consensus Estimate for current-quarter earnings has been revised 22.6% downward over the past 60 days. For the current year, the consensus mark for earnings has moved 13.4% south in the same time frame. The unfavorable estimate revisions indicate brokers’ lack of confidence in the stock.
Weak Zacks Rank and Style Score: CHRW currently carries a Zacks Rank #5 (Strong Sell). Moreover, the company’s current Value Score of D shows its unattractiveness.
Unimpressive Price Performance: CHRW shares have lost 14.4% over the past 60 days compared with its industry’s 6.4% decline.
Image Source: Zacks Investment Research
Other Headwinds: C.H. Robinson’s top line gets unfavorably impacted due to lower pricing in ocean and truckload services. Soft freight market continues to remain a woe. Overall weak demand, high inventories and excess capacity lead to a more competitive marketplace and subdued transportation rates. The company’s focus on making investments in technology, though aimed at long-term growth prospects, might weigh on its bottom line in the near term.
Bearish Industry Rank: The industry to which CHRW belongs currently has a Zacks Industry Rank of 229 (250 plus groups). Such an unfavorable rank places CHRW in the bottom 9% of Zacks Industries. Studies show that 50% of a stock price movement is directly related to the performance of the industry group it belongs to.
A mediocre stock within a strong group is likely to outclass a robust stock in a weak industry. Therefore, reckoning the industry’s performance becomes imperative.
Stocks to Consider
Investors interested in the broader Transportation sector may consider stocks like GATX Corporations (GATX - Free Report) and SkyWest (SKYW - Free Report) . Each stock sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
GATX has an encouraging track record with respect to earnings surprise, having surpassed the Zacks Consensus Estimate in three of the last four quarters and missing the mark in the remaining one. The average beat is 16.47%.
The Zacks Consensus Estimate for 2024 earnings has been revised 9% upward over the past 90 days. The company has an expected earnings growth rate of 6.5% for 2024. Shares of GATX have rallied 24.2% in the past year.
SkyWest's fleet modernization efforts are commendable. The Zacks Consensus Estimate for SKYW’s 2024 earnings has improved 26% over the past 90 days. Shares of SkyWest have surged 261% in the past year.
SKYW has an expected earnings growth rate of more than 100% for 2024. The company delivered a trailing four-quarter earnings surprise of 128.02%, on average.