Here's Why Investors Should Buy C.H. Robinson Stock Now

Zacks
01-14

C.H. Robinson Worldwide (CHRW) 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.

Let’s take a look at the factors that make the stock a strong investment pick at the moment.

An Outperformer: A glimpse at the company’s price trend reveals that the stock has had an impressive run on the bourse so far this year. Shares of CHRW have gained 17.5% in the past six months, outperforming its industry and the S&P 500, of which the company is a key member.

Six-Month Price Performance


Image Source: Zacks Investment Research

Solid Rank & VGM Score: CHRW has a Zacks Rank #2 (Buy) and a VGM Score of B. Our research shows that stocks with a VGM Score of A or B, when combined with a Zacks Rank #1 (Strong Buy) or 2, offer the best investment opportunities. Thus, the company seems to be an appropriate investment proposition at the moment.

Northward Estimate Revisions: The positivity surrounding the stock is evident from the northward movement of estimate revisions. The Zacks Consensus Estimate for first-quarter 2025 earnings has moved up 3% in the past 90 days. For 2025, the Zacks Consensus Estimate has moved up 5.8% in the past 90 days.

Positive Earnings Surprise History: C.H. Robinson has an encouraging earnings surprise history. The company’s earnings have surpassed the Zacks Consensus Estimate in three of the last four quarters (missed the mark in the remaining quarter). The average beat is 10.3%.

Earnings Expectations: Earnings growth and stock price gains often indicate a company’s prospects. For first-quarter 2025, CHRW’s earnings are expected to grow 19.8% year over year. For 2025, CHRW’s earnings are expected to grow 10.9% year over year.

Driving Factors: CHRW has been making uninterrupted dividend payments for more than 25 years.CHRW has been consistently making efforts to reward its shareholders through dividends and share buybacks. During the first nine months of 2024, CHRW returned $282.8 million of cash to shareholders, including $218.9 million in the form of cash dividends and $63.9 million through share repurchases.

Apart from its consistent shareholder-friendly initiatives, CHRW remains focused on cost-cutting measures and improving productivity and efficiency to mitigate high expenses and a weaker-than-expected demand scenario.

Stocks to Consider

Investors interested in the Zacks Transportation sector may also consider American Airlines AAL and United Airlines UAL.

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

AAL 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 three of the trailing four quarters and missed once, delivering an average beat of 124.4%. Shares of AAL have risen 16.4% in the past year.

United Airlines currently carries a Zacks Rank #2. UAL has an expected earnings growth rate of 1.3% for the current year.

The company has an encouraging track record with respect to the earnings surprise, having surpassed the Zacks Consensus Estimate in each of the trailing four quarters. The average beat is 26.9%. Shares of UAL have surged 122.9% in the past year.

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United Airlines Holdings Inc (UAL) : Free Stock Analysis Report

C.H. Robinson Worldwide, Inc. (CHRW) : Free Stock Analysis Report

American Airlines Group Inc. (AAL) : Free Stock Analysis Report

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