Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Expeditors (EXPD) Shares Plunge 6.5% In A Year: Here's Why

Published 03/01/2020, 08:33 PM
Updated 07/09/2023, 06:31 AM

Shares of Expeditors International of Washington, Inc. (NASDAQ:EXPD) have lost 6.5% against the industry's decline of 4.8% loss in a year’s time. The below -par performance was primarily caused by declining revenues in the Airfreight Services segment and the coronavirus outbreak in China.

Let’s take a detailed look into the factors hurting the stock.

High operating expenses due to higher fuel costs and labor has proved to be a setback for Expeditors. The coronavirus outbreak in China has proved to be a huge bane especially because the company has significant Chinese exposure. The extended closure of factories in China due to the virus outbreak might dent freight volumes in the March-end quarter. Global supply chains are likely to be affected owing to shortages of raw materials, parts and supplies.

Declining revenues in the Airfreight Services segment (2019 revenues down 10.5%) due to weakness pertaining to China operations have dented Expeditors' performance.

Since Expeditors operates globally, it is exposed to currency exchange rate risks. Notably, foreign currency losses increased more than 100% in 2019 on a year-over-year basis.

Negative Estimate Revisions and Lackluster Momentum Score

The negativity revolving around the stock is evident from the Zacks Consensus Estimate for the current year earnings being revised downward by 6.7% in the past 60 days to $3.48.

The company’s Momentum Score of D further highlights its short-term unattractiveness.

Additionally, Expeditors carries a Zacks Rank #4 (Sell).

Stocks to Consider

Few better-ranked stocks in the Zacks Transportation sector are Azul S.A (NYSE:AZUL) , Frontline Ltd. (NYSE:FRO) and Costamare Inc. (NYSE:CMRE) , sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Shares of Azul, Frontline and Costamare have rallied 1.7%, 23% and 25.8%, respectively, in a year.

Looking for Stocks with Skyrocketing Upside?

Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.

Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.

See the pot trades we're targeting>>



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

Frontline Ltd. (FRO): Free Stock Analysis Report

Costamare Inc. (CMRE): Free Stock Analysis Report

AZUL SA (AZUL): Free Stock Analysis Report

Original post

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.