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Expeditors (EXPD) Banks on Investor-Aiding Tools & Revenues

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Expeditors International of Washington, Inc. (EXPD - Free Report) is currently benefiting from an uptick in airfreight revenues and shareholder-friendly measures. Driven by these tailwinds, the stock has moved up 4.5% in the past year against a 6.7% decline of the industry it belongs to.

Zacks Investment Research
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We are impressed by Expeditors' efforts to reward shareholders through dividend payments and buybacks. In the coronavirus-ravaged 2020, the company repurchased 4.6 million shares on an average price of $72.26 per share. In May 2021, the company had announced an 11.5% hike in semi-annual cash dividend to 58 cents per share (annualized $1.16 per share). During 2021, the company repurchased 4.4 million shares at an average price of $117.54 per share.

The uptick in airfreight revenues also bodes well. Revenues from the airfreight services segment increased 63.3% year over year in 2020. The coronavirus-induced cancellation of multiple passenger flights (that usually carry freight as well as passenger luggage) increased the usage of charters. Due to the coronavirus-induced imbalance between scheduled capacity and demand, the company is compelled to use charters to meet customer needs. Revenues from the airfreight services unit increased 58.4% year over year in 2021.

The sequential decline in Expeditors' current ratio in fourth-quarter 2021 is a concern. Evidently, Expeditors' current ratio in fourth-quarter 2021 was 1.78 compared with 1.87 at the end of the September quarter.

Zacks Rank & Other Stocks to Consider

Expeditors currently sport a Zacks Rank #1 (Strong Buy).

Investors interested in the broader Zacks Transportation sector can also consider other top-ranked stocks like Air Lease Corporation (AL - Free Report) , Old Dominion Freight Line, Inc. (ODFL - Free Report) and Triton International Limited .

The long-term expected EPS (three to five years) growth rate for Air Lease is pegged at 16%.  We are impressed by Air Lease’s endeavours to reward its shareholders. Steady growth in fleet, increase in cash collections and improved aircraft sales activity are driving Air Lease’s top line (up 3.6% year over year in 2021).

AL currently sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

The long-term expected EPS (three to five years) growth rate for Old Dominion is pegged at 16%. Old Dominion is benefiting from strong performance in the LTL segment, owing to improved freight conditions. In 2021, revenues in the LTL services segment increased 30.7% on a year-over-year basis.

Driven by the tailwinds, the stock has increased 38% in the past year.  ODFL currently carries a Zacks Rank #2 (Buy).

The long-term expected EPS (three to five years) growth rate for Triton is pegged at 10%. Gradual increases in trade volumes and container demand bode well for the company. With easing coronavirus-led restrictions in the United States and Europe, the company saw a strong rebound in its business in the third, the fourth of 2020 as well as in each of the four quarters of 2021.

Driven by the tailwinds, the stock has increased 28.7% in the past year. TRTN currently carries a Zacks Rank #2.

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