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Here's Why Investors Should Add Expeditors Stock to Their Portfolio
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Key Takeaways
Expeditors stock has rallied 26.8% so far this year, outperforming the transportation-services industry.
EXPD earnings estimates have moved higher, signaling growing confidence in its outlook.
Expeditors posts consistent earnings beat 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 so far this year. Shares of EXPD have gained 26.8% in the year-to-date period against the 3.5% loss of the transportation-services industry it belongs to.
EXPD's YTD Price Comparison
Image Source: Zacks Investment Research
Solid Zacks Rank: EXPD presently carries a Zacks Rank #1 (Strong Buy). Our research shows that stocks with a Zacks Rank #1 or 2 (Buy) 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 18.44% north in the past 60 days. For 2026 and 2027, the consensus mark for earnings has been revised upward by 14.01% and 12.85%, respectively, in the same time frame. The favorable estimate revisions indicate brokers’ confidence in the stock.
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%.
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 in 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 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.
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%.
Schneider currently carries a Zacks Rank #2.
Schneider has an expected earnings growth rate of 65.08% for the current year. Schneider’s earnings outpaced the Zacks Consensus Estimate in two of the trailing four quarters (missed the mark in the remaining two quarters), delivering an average miss of 10.01%. The consensus estimate for Schneider’s full year earnings has moved 14.29% north in the past 60 days.
View the Zacks #1 Rank List
Image: Bigstock
Here's Why Investors Should Add Expeditors Stock to Their Portfolio
Key Takeaways
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 so far this year. Shares of EXPD have gained 26.8% in the year-to-date period against the 3.5% loss of the transportation-services industry it belongs to.
EXPD's YTD Price Comparison
Solid Zacks Rank: EXPD presently carries a Zacks Rank #1 (Strong Buy). Our research shows that stocks with a Zacks Rank #1 or 2 (Buy) 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 18.44% north in the past 60 days. For 2026 and 2027, the consensus mark for earnings has been revised upward by 14.01% and 12.85%, respectively, in the same time frame. The favorable estimate revisions indicate brokers’ confidence in the stock.
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%.
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 in 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 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 Schneider National, Inc. (SNDR - 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%.
Schneider currently carries a Zacks Rank #2.
Schneider has an expected earnings growth rate of 65.08% for the current year. Schneider’s earnings outpaced the Zacks Consensus Estimate in two of the trailing four quarters (missed the mark in the remaining two quarters), delivering an average miss of 10.01%. The consensus estimate for Schneider’s full year earnings has moved 14.29% north in the past 60 days.