Yahoo Finance Here's Why You Should Retain C.H. Robinson (CHRW) Stock Now
C.H. Robinson Worldwide, Inc. CHRW is benefiting from improved freight market conditions and shareholder-friendly initiatives. Notably, shares of C.H. Robinson have gained 1.7% over the past three months against the 0.1% loss of the industry it belongs to.
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How is C.H. Robinson Placed?
We are impressed with C.H. Robinson’s efforts to boost its shareholder value via dividend payouts and shares repurchases are commendable. C.H. Robinson rewarded its shareholders in 2022 through a combination of cash dividends ($285.32 million) and share repurchases ($1,488.28 million). Such shareholder-friendly moves indicate the company’s commitment to creating value for shareholders and underline its confidence in its business.
With improved freight market conditions, C.H. Robinson is benefiting from higher pricing and volumes across most of its service lines. In 2022, the top line improved 6.9% owing to higher pricing in truckload, less-than-truckload and ocean services. Solid segmental growth was also witnessed in 2022. In the North American Surface Transportation segment, total revenues were $15.82 billion (up 9.1% year over year) in 2022. Total revenues in the Global Forwarding segment in 2022 were $6.81 billion, up 1.2% year over year.
On the flip side, an increase in operating expenses poses a threat to C.H. Robinson’s bottom line. In 2022, total operating costs increased 6.4% year over year. Costs are also likely to be high going forward.
C.H. Robinson’s liquidity position is weak. CHRW exited the fourth quarter with cash and cash equivalents of $217.48 million compared with the long-term debt of $920.04 million. This implies that the company does not have sufficient cash to meet its debt obligations.
Zacks Rank & Stocks to Consider
Currently, C.H. Robinson carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the Zacks Transportation sector can consider Copa Holdings, S.A. CPA and American Airlines AAL. Copa Holdings presently sports a Zacks Rank #1 (Strong Buy) and American Airlines carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Copa Holdings has an expected earnings growth rate of 40.8% for the current year. CPA delivered a trailing four-quarter earnings surprise of 33.35%, on average.
The Zacks Consensus Estimate for CPA’s current-year earnings has improved 15% over the past 90 days. Shares of CPA have risen 22.7% over the past six months.
AAL has an expected earnings growth rate of more than 100% for the current year. AAL delivered a trailing four-quarter earnings surprise of 7.79%, on average.
The Zacks Consensus Estimate for AAL’s current-year earnings has improved 40.5% over the past 90 days. Shares of AAL have gained 14.8% over the past six months.
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C.H. Robinson Worldwide, Inc. (CHRW) : Free Stock Analysis Report
Copa Holdings, S.A. (CPA) : Free Stock Analysis Report
American Airlines Group Inc. (AAL) : Free Stock Analysis Report
