Shares of C.H. Robinson Worldwide, Inc. (NASDAQ:CHRW) have outperformed the industry in the last six months. The stock has rallied 27.8% versus the industry’s decline of 0.7%.
Reasons Behind the Price Surge
In January 2017, the company reported fourth-quarter 2017 results with better-than-expected earnings and revenues. Moreover, both the bottom and top line increased substantially year over year. Price rise and volume growth across most transportation sectors drove the sales. Notably, the company has an impressive earnings history, having outshined the Zacks Consensus Estimate in three of the preceding four quarters with an average beat of 3.6%.
The company’s efforts to reward shareholders through dividends and share buybacks are also encouraging. In December 2017, the company’s board of directors approved a 2.2% hike in quarterly cash dividend to 46 cents per share (or $1.84 annually).
Additionally, C.H. Robinson’s endeavors to expand globally via mergers and acquisitions are a further positive. Last August, it acquired Milgram & Company for around $62 million CAD (approximately $50 million USD). The buyout will likely boost the acquirer’s international presence and be accretive to its portfolio this year. This strategy is expected to drive growth for the company.
The company’s Zacks Rank #2 (Buy) substantiates the bullish sentiment surrounding the stock as well. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Other Key Picks
Other top-ranked stocks in the broader Transportation sector include Deutsche Lufthansa (DE:LHAG) AG (OTC:DLAKY) , Delta Air Lines, Inc. (NYSE:DAL) and Southwest Airlines Co. (NYSE:LUV) . While Deutsche Lufthansa sports a Zacks Rank #1 (Strong Buy), Delta Air Lines and Southwest Airlines carry a Zacks Rank of 2.
Shares of Deutsche Lufthansa, Delta Air Lines and Southwest Airlines have gained more than 28%, 12% and 11%, respectively, in the last six months.
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C.H. Robinson Worldwide, Inc. (CHRW): Free Stock Analysis Report
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