Yahoo Finance Should You Investigate Expeditors International of Washington, Inc. (NASDAQ:EXPD) At US$106?
Let's talk about the popular Expeditors International of Washington, Inc. (NASDAQ:EXPD). The company's shares saw a double-digit share price rise of over 10% in the past couple of months on the NASDAQGS. With many analysts covering the large-cap stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price. However, could the stock still be trading at a relatively cheap price? Today I will analyse the most recent data on Expeditors International of Washington’s outlook and valuation to see if the opportunity still exists.
View our latest analysis for Expeditors International of Washington
Is Expeditors International of Washington Still Cheap?
According to my valuation model, Expeditors International of Washington seems to be fairly priced at around 5.30% above my intrinsic value, which means if you buy Expeditors International of Washington today, you’d be paying a relatively fair price for it. And if you believe the company’s true value is $100.20, there’s only an insignificant downside when the price falls to its real value. What's more, Expeditors International of Washington’s share price may be more stable over time (relative to the market), as indicated by its low beta.
Can we expect growth from Expeditors International of Washington?
Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations. Though in the case of Expeditors International of Washington, it is expected to deliver a highly negative earnings growth in the next few years, which doesn’t help build up its investment thesis. It appears that risk of future uncertainty is high, at least in the near term.
What This Means For You
Are you a shareholder? EXPD seems fairly priced right now, but given the uncertainty from negative returns in the future, this could be the right time to reduce the risk in your portfolio. Is your current exposure to the stock beneficial for your total portfolio? And is the opportunity cost of holding a negative-outlook stock too high? Before you make a decision on the stock, take a look at whether its fundamentals have changed.
Are you a potential investor? If you’ve been keeping an eye on EXPD for a while, now may not be the most optimal time to buy, given it is trading around its fair value. The stock appears to be trading at fair value, which means there’s less benefit from mispricing. In addition to this, the negative growth outlook increases the risk of holding the stock. However, there are also other important factors we haven’t considered today, which can help gel your views on EXPD should the price fluctuate below its true value.
So while earnings quality is important, it's equally important to consider the risks facing Expeditors International of Washington at this point in time. Case in point: We've spotted 2 warning signs for Expeditors International of Washington you should be mindful of and 1 of them is concerning.
If you are no longer interested in Expeditors International of Washington, you can use our free platform to see our list of over 50 other stocks with a high growth potential.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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