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Expeditors International of Washington, Inc. (EXPD), headquartered in Seattle, Washington, with a market cap of $15.6 billion, is a global logistics and supply chain management leader. Known for its cutting-edge technology and comprehensive service offerings, Expeditors connects businesses worldwide, providing efficient and customized transportation, freight forwarding, and distribution solutions across diverse industries.
Companies valued at over $10 billion are typically classified as “large-cap stocks,” a distinction Expeditors International exemplifies through its significant market presence and logistics and supply chain leadership. With its innovative technology and global network, Expeditors delivers seamless transportation, freight forwarding, and distribution solutions to businesses across various sectors.
Shares of Expeditors are currently trading 15.4% below their 52-week high of $131.59, reached on Sep. 30. Over the past three months, the stock has declined 12.9%, significantly underperforming the Industrial Select Sector SPDR Fund (XLI), which marginally declined during the same period.
Over the past 52 weeks, EXPD stock has declined by 13.3% and fallen 12.6% in the last six months, underperforming the XLI, which has risen 17.8% over the past year and 10.3% over the last six months.
EXPD has confirmed its recent bearish trend by trading below both its 50-day and 200-day moving averages since December.
Expeditors International has lagged behind its peers due to limited investment in technology and automation, which has contributed to slower processing times and elevated costs. Additionally, the company has faced challenges in adapting to evolving market trends and customer expectations, resulting in a loss of market share to more tech-savvy competitors.
Despite these headwinds, Shares of Expeditors International rose 1.4% following the company’s strong Q3 earnings report on Nov. 5. Revenue increased 37% year over year to $3 billion, exceeding analyst forecasts by 21.3%. GAAP EPS came in at $1.63, beating estimates by 22.1%. Additionally, EBITDA reached $327.1 million, outpacing expectations by 31.4%.
Highlighting the contrast in performance, rival C.H. Robinson Worldwide, Inc. (CHRW) has outperformed EXPD. Over the 52 weeks, CHRW gained 9.6%.
Given EXPD's poor price performance, analysts have a pessimistic outlook on the stock. It has a consensus "Moderate Sell" rating from 14 analysts covering the stock, with a mean price target of $116.15, indicating a potential upside of 4.4% from its current level.
