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Here's Why You Should Add Expeditors Stock to Your Portfolio Now

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Expeditors International of Washington (EXPD - Free Report) is benefiting from strong demand in Asia, driving impressive top-line growth. The company's shareholder-friendly initiatives are also noteworthy, reflecting its commitment to delivering value to investors. Consequently, if you haven’t taken advantage of the share price appreciation yet, it’s the right time you add the stock to your portfolio.

Factors Favoring EXPD Stock

Robust Price Performance: The company’s price trend reveals that its shares have risen 5.5% year to date against the Transportation - Services industry’s 5.3% decline.

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Image Source: Zacks Investment Research

Northward Estimate Revisions: The Zacks Consensus Estimate for earnings per share is robust for first-quarter and second-quarter 2025 apart from the full-year 2025 & 2026. The favorable estimate revisions indicate brokers’ confidence in the stock.

Zacks Investment Research
Image Source: Zacks Investment Research

Expeditors’Zacks Rank: EXPD currently carries a Zacks Rank #2 (Buy).

Positive Earnings Surprise History: Expeditors has an encouraging earnings surprise history. The company's earnings outpaced the Zacks Consensus Estimate in three of the trailing four quarters and met once, delivering an average surprise of 11.6%.

GrowthFactors: Expeditors’ December-quarter results demonstrate its resilience in navigating challenging conditions. Despite limited air capacity, the company has skillfully adapted, ensuring customer freight continues to move efficiently. This ability to perform under pressure highlights Expeditors' strategic focus and reinforces its reputation as a reliable partner in volatile markets. Additionally, strong demand for technology products provides a favorable boost for EXPD.

EXPD’s commitment to returning capital to its shareholders through stock repurchases and dividend payments is commendable. In 2024, the company repurchased 7.1 million shares at an average price of $119.47 per share compared to 12.1 million shares repurchased in 2023 at a lower average price of $114.68 per share. While the number of shares repurchased was slightly lower in 2024, the higher average price indicates a more strategic and measured approach. Additionally, the 5.8% increase in the dividend payout in 2024 to $1.46 reflects strong cash flow and underscores a positive outlook for the company’s future growth and financial health.

Other Stocks to Consider

Investors interested in the Transportationsector may also consider SkyWest (SKYW - Free Report) and Frontier Group (ULCC - Free Report) .

SkyWest currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

SKYW has an expected earnings growth rate of 16% for the current year. The company has an impressive earnings surprise history. Its earnings outpaced the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average beat of 16.7%. Shares of SKYW have risen 9.1% over the past six months.

Frontier Group flaunts a Zacks Rank of 1 at present.

ULCC has an expected earnings growth rate of more than 300% for the current year.

The company has an encouraging track record with respect to earnings surprise, having surpassed the Zacks Consensus Estimate in three of the trailing four quarters and missed once. The average surprise is 1.1%. Shares of ULCC have surged 43% in the past six months.

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