Expeditors International of Washington EXPD is benefiting from its cost-reduction initiatives. The company’s shareholder-friendly initiatives also bode well.

Let us delve deep to unearth the factors working in favor of this Zacks Rank #2 (Buy) stock.

EXPD’s Northward Earnings Estimates: In the past 60 days, the Zacks Consensus Estimate for current-quarter, current-year and next-year earnings has been revised upward by 6.9%, 8.4% and 0.2%, respectively. Such favorable estimate revisions indicate brokers’ confidence in the stock.

Image Source: Zacks Investment Research

Given the wealth of information at the brokers’ disposal, it is in the best interest of investors to be guided by their expert advice and the direction of their estimate revisions. This is because it serves as a key indicator in determining the price of a stock.

Other Tailwinds of EXPD: Expeditors’ efforts to reward its shareholders through dividends and share buybacks are impressive. In May 2024, management announced a 5.8% increase in its semi-annual cash dividend. EXPD hiked its semi-annual cash dividend in 2023 as well. The company is also active on the share buyback front.

EXPD has been cutting costs to counter the soft demand scenario. Management noted that compensation, its largest and most variable expense, came down significantly in 2023 on a year-over-year basis. Emphasizing financial robustness, Expeditors’ current ratio (a measure of liquidity) was an impressive 1.72 at the end of third-quarter 2024.

We are also optimistic about the company’s buyout of Fleet Logistics’ Digital Platform. The acquisition has boosted Expeditors’ online less-than-truckload shipping platform, Koho.

Other Stocks to Consider

Investors interested in the Zacks Transportation sector may consider Westinghouse Air Brake Technologies WAB and SkyWest SKYW.

Westinghouse Air Brake Technologies currently carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

WAB has an expected earnings growth rate of 2% 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 9.46%. Shares of WAB have risen 73.6% in the past year.

SkyWest presently sports a Zacks Rank #1. SKYW has an expected earnings growth rate of 4.07% 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 79.12%. Shares of SKYW have climbed 147.5% in the past year.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Expeditors International of Washington, Inc. (EXPD) : Free Stock Analysis Report

SkyWest, Inc. (SKYW) : Free Stock Analysis Report

Westinghouse Air Brake Technologies Corporation (WAB) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research