C.H. Robinson Worldwide’s CHRW bottom line is benefiting from its robust cost-cutting initiatives, contributing well enough to enhance the company’s prospects. Shareholder-friendly initiatives also bode well for CHRW. Due to these tailwinds, the company’s shares have performed impressively on the bourse. If you have not taken advantage of the share price appreciation yet, it’s time to do so.

Factors Favoring CHRW Stock

Robust Price Performance: The company’s price trend reveals that its shares have risen 27.5% over the past year, surpassing the industry’s 8.9% fall.

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Northward Estimate Revisions: The Zacks Consensus Estimate for earnings per share has been revised upward by 7.1% over the past 60 days for the first quarter of 2025. For 2025 and 2026, the consensus mark for earnings per share has moved 1.9% and 9.8% north in the same time frame. The favorable estimate revisions indicate brokers’ confidence in the stock.

Solid Zacks Rank: CHRW currently carries a Zacks Rank #2 (Buy).

Earnings Expectations: Earnings growth and stock price gains often indicate a company’s prospects. For the first quarter of 2025, CHRW’s earnings are expected to grow 23.3% year over year. For 2025, CHRW’s earnings are expected to rise 6.9% year over year.

Positive Earnings Surprise History: C.H. Robinson Worldwide has an encouraging earnings surprise history. The company's earnings outpaced the Zacks Consensus Estimate in three of the trailing four quarters and missed once, delivering an average surprise of 57.4%.

GrowthFactors: C.H. Robinson's proactive cost-cutting initiatives are boosting the company’s bottom line. In the fourth quarter of 2024, CHRW’s operating expenses declined 2% year over year to $500.8 million. Personnel expenses decreased 2.1% to $354.4 million, primarily driven by cost optimization efforts and productivity improvements. Moreover, other selling, general and administrative expenses fell 2% year over year, largely due to a $12.6 million favorable adjustment related to the planned divestiture of the Europe Surface Transportation business.

The company’s commitment to its shareholders is encouraging. CHRW has consistently paid dividends for over 25 years without interruption. During the first nine months of 2024, CHRW returned $282.8 million of cash to shareholders, including $218.9 million in cash dividends and $63.9 million through share repurchases. In the fourth quarter of 2024, cash returned to shareholders totaled $82.8 million, with $74.5 million in cash dividends and $8.3 million in repurchases of common stock.

Other Stocks to Consider

Investors interested in the Zacks Transportation sector may also consider Alaska Air Group ALK and Golar LNG Limited GLNG.

Alaska Air Group currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.  ALK has an expected earnings growth rate of 23.8% 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 33.1%. Shares of ALK have risen 103.4% in the past year.

Golar LNG Limited currently sports a Zacks Rank #1 and has an expected earnings growth rate of 16.1% for the current year.

The company has an encouraging track record with respect to the earnings surprise, having surpassed the Zacks Consensus Estimate in three of the trailing four quarters and missed once. The average beat is 30.2%. Shares of GLNG have surged 87.2% in the past year.

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

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