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Founded in 1905, the Eden Prairie, Minnesota-based C.H. Robinson Worldwide, Inc. (CHRW) provides freight transportation and related logistics and supply chain services in the United States and internationally. With a market cap of $12.1 billion, the company operates in two segments, North American Surface Transportation and Global Forwarding.
Companies valued at over $10 billion are typically classified as “large-cap stocks,” and CHRW perfectly fits that description, with its market cap exceeding this mark, underscoring its size, influence, and dominance within the integrated freights and logistics industry. CHRW’s diverse service portfolio, spanning truckload, LTL, air, and ocean freight, strengthens its market position. It leverages its extensive global logistics network and strong carrier relationships to provide efficient freight transportation and supply chain solutions.
But it’s not all sunshine and rainbows for CHRW. It is currently trading nearly 10.5% below its 52-week high of $114.82, reached on Dec. 13. Shares of CHRW have dwindled marginally over the past three months, outperforming the iShares Transportation Average ETF’s (IYT) 5.4% decline during the same time frame.
Looking at the broader trend, CHRW has surged 40.1% over the past year, outperforming IYT’s 8.3% decline. In the past six months, however, CHRW has dropped 6.4%, a sharper decline than IYT’s 6.1% loss.
Technically, the stock remains in an uptrend, having traded above its 50-day and 200-day moving average since March-end.
CHRW shares declined 1.7% following its Q4 earnings release on Jan. 29. The company reported a marginal increase in its revenue, which amounted to $4.2 billion, along with a 10.4% increase in its gross profit, which came in at $672.9 million. The company’s EPS amounted to $1.21, surpassing the Wall Street estimates by 8%.
Its rival, Landstar System, Inc. (LSTR), has lagged behind, with its shares declining 19.4% over the past six months and 21% over the past year.
Wall Street analysts are moderately bullish on CHRW’s prospects. The stock has a consensus “Moderate Buy” rating from the 25 analysts covering it, and the mean price target of $114.92 suggests a potential upside of 11.8% from current price levels.
