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C.H. Robinson Worldwide (CHRW) Gains But Lags Market: What You Should Know

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C.H. Robinson Worldwide (CHRW - Free Report) closed the most recent trading day at $100.38, moving +1.68% from the previous trading session. This change lagged the S&P 500's 3.06% gain on the day. Meanwhile, the Dow gained 2.8%, and the Nasdaq, a tech-heavy index, added 0.19%.

Heading into today, shares of the trucking company had lost 14.42% over the past month, lagging the Transportation sector's loss of 10.41% and the S&P 500's loss of 6.15% in that time.

Investors will be hoping for strength from C.H. Robinson Worldwide as it approaches its next earnings release. On that day, C.H. Robinson Worldwide is projected to report earnings of $2.13 per share, which would represent year-over-year growth of 15.14%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.43 billion, up 2.66% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $8.79 per share and revenue of $26.39 billion, which would represent changes of +39.3% and +14.23%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for C.H. Robinson Worldwide. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.25% higher. C.H. Robinson Worldwide is currently a Zacks Rank #3 (Hold).

In terms of valuation, C.H. Robinson Worldwide is currently trading at a Forward P/E ratio of 11.24. Its industry sports an average Forward P/E of 10.24, so we one might conclude that C.H. Robinson Worldwide is trading at a premium comparatively.

It is also worth noting that CHRW currently has a PEG ratio of 1.25. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Transportation - Services stocks are, on average, holding a PEG ratio of 1.57 based on yesterday's closing prices.

The Transportation - Services industry is part of the Transportation sector. This group has a Zacks Industry Rank of 160, putting it in the bottom 37% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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