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Here's Why Investors Should Add Expeditors Stock to Their Portfolio

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Key Takeaways

  • Expeditors stock gained 30.4% in the past six months, outperforming the transportation-services industry.
  • EXPD earnings estimates have moved higher, signaling growing confidence in its outlook.
  • Expeditors posts consistent earnings beats and benefits from e-commerce-driven demand.

Expeditors International of Washington, Inc. (EXPD - Free Report) performed well in the past year and has the potential to sustain the momentum in the future. If you have not taken advantage of its share price appreciation yet, it’s time to do so.

Against this backdrop, let’s look at the factors that make this stock an attractive pick.

What Makes EXPD an Attractive Pick?

An Outperformer: A glimpse at the company’s price trend reveals that the stock has had an impressive run over the past year. Shares of EXPD have gained 30.4% in the past six months, against the 4.2% loss of the transportation-services industry.

EXPD’s Six-Month Price Comparison

Zacks Investment Research Image Source: Zacks Investment Research

Solid Zacks Rank: EXPD presently carries a Zacks Rank #2 (Buy). Our research shows that stocks with a Zacks Rank #1 (Strong Buy) or 2 offer the best investment opportunities. Thus, the company is a compelling investment proposition at the moment.

Northward Estimate Revisions: The direction of estimate revisions serves as an important pointer when it comes to the price of a stock. The Zacks Consensus Estimate for third-quarter 2026 earnings has moved 21.14% north in the past 60 days. For 2026 and 2027, the consensus mark for earnings has been revised 14.86% and 13.84% upward, respectively, in the same time frame. The favorable estimate revisions indicate brokers’ confidence in the stock.

Zacks Investment Research Image Source: Zacks Investment Research

Positive Earnings Surprise History: EXPD has an impressive earnings surprise history. The company’s earnings surpassed the Zacks Consensus Estimate in each of the last four quarters, delivering an average beat of 17.15%.

Zacks Investment Research Image Source: Zacks Investment Research

Earnings Expectations: Earnings growth and stock price gains often indicate a company’s prospects. For third-quarter 2026, EXPD’s earnings are expected to improve 29.27% year over year. For 2026 and 2027, Expeditors’ earnings are expected to improve 28.57% and 1.05% year over year, respectively.

Growth Factors:E-commerce growth is a tailwind for Expeditors. E-commerce, which has gained importance, leads to greater demand for intermodal services – the long-haul movement of shipping containers from ship to rail and truck.E-commerce demand strength should continue to support the growth of companies like Expeditors.

Expeditors continues to align costs and technology spending with long-term productivity. Second-quarter 2026 operating income increased 41% year over year to $350 million, while operating efficiency reached 32.2% despite a $25 million Global Technology restructuring charge. Management anticipates the restructuring to lower annual costs by about $50 million and plans further investment in artificial intelligence and technology capabilities to increase operating margins over time. 

Expeditors' strong financial position supports its growth-by-acquisition strategy. The company’s efforts to reward its shareholders through dividend payments and share buybacks. Such moves instill investor confidence and positively impact the company's bottom line.

Other Stocks to Consider

Investors interested in the Zacks Transportation sector may consider Seanergy Maritime Holdings (SHIP - Free Report) and J.B. Hunt Transportation (JBHT - Free Report) .

Seanergy Maritime Holdings currently sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

SHIP has an expected earnings growth rate of more than 100% for the current year. The company has an encouraging earnings surprise history. Its earnings topped the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average beat of 38%.

J.B. Hunt carries a Zacks Rank #2.

J.B. Hunt has an expected earnings growth rate of 26.63% for 2026.  The company has an encouraging earnings surprise history. Its earnings outpaced the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average beat of 9.79%.

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