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With a market cap of $11.6 billion, C.H. Robinson Worldwide, Inc. (CHRW) is a third-party logistics company offering freight transportation services and logistics solutions across various industries. The company is based in Minnesota, and its services range from specific shipment commitments to comprehensive, integrated relationships.
Shares of the logistic titan have underperformed the broader market slightly over the past year. CHRW has surged 5.2% over this time frame, while the broader S&P 500 Index ($SPX) is up 26.1%. In 2024, the stock gained 16.5%, compared to SPX’s 14.9% return on a YTD basis.
Narrowing the focus, CHRW has surpassed the ProShares Supply Chain Logistics ETF’s (SUPL) 1.1% return over the past year.
CHRW's underperformance in the market stems from a challenging operating environment where economic concerns have led major shipping customers to cut back, resulting in softened demand for transport services.
However, on Jul. 31, C.H. Robinson reported its Q2 earnings and the stock jumped 14.8% in the subsequent trading session. The upside was driven by solid second-quarter results, with both earnings and revenues showing year-over-year improvement. The company showed notable margin improvement in its two main business units due to effective cost-cutting measures.
For the current fiscal year, ending in December, analysts expect C.H. Robinson’s EPS to rise 25.5% year over year to $4.14. However, the company’s earnings surprise history is mixed. It exceeded or matched the consensus estimate in three of the last four quarters while missing on one other occasion.
C.H. Robinson stock has a consensus “Hold” rating overall. Out of 23 analysts covering the stock, five rate it as a "Strong Buy," 16 suggest a “Hold,” and two advise a "Strong Sell.”
This configuration is more bullish than two months ago, with three “Strong Sells.”
On Aug. 1, TD Cowen maintained its “Hold” rating on C.H. Robinson but raised its price target from $86 to $103. This adjustment follows the company’s strong second-quarter performance, which exceeded both TD Cowen’s forecasts and consensus expectations. Despite the positive second-quarter results, TD Cowen remains cautious about the year's second half due to weaker performance in July across multiple carriers.
While CHRW currently trades above its mean price target of $97.85, the Street-high target of $112 represents an upside potential of 12.9% from the prevailing price levels.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
