Finding top growth stocks during market sell-offs can help identify future winners to keep a close eye on. And C.H. Robinson Worldwide is positioned to outperform the market as it profits from supply-chain disruptions.
C.H. Robinson is a freight transporter and shipping logistics firm. The company — headquartered in Eden Prairie, Minn. — is primarily involved in North American surface shipping (accounting for three-quarters of revenue), though also has a sizable global forwarding segment.
Ranked second in IBD's logistics industry group, C.H. Robinson stock has been holding up despite market weakness, with a relative strength line near highs.
The company has been performing well in large part due to strong growth. After almost doubling EPS from $3.72 in 2020 to $6.31 in 2021, analysts expect full-year EPS to increase further to $7.33 this year.
Top Growth Stock Delivers Record Results
Last month, C.H. Robinson reported record profits and revenue in the first quarter. Earnings per share of $2.05 beat analyst estimates, and total revenue increased 41.9% year-over-year to $6.8 billion. This impressive growth was delivered primarily through higher pricing and volume across all company segments.
Supply-chain constraints have led consumers to look for expedited ways to have products delivered, and C.H. Robinson has met this demand. Nevertheless, as the global economic environment changes, it is crucial to be cautious of a slowdown in global growth. That's especially true with higher fuel prices and shipping costs, which could significantly harm consumer demand.
Autonomous Driving Could Deliver Long-Term Growth
If shipping demand remains strong, C.H. Robinson is in a good position to grow further, especially with its investment in technology. The biggest endeavor is a partnership with Waymo to pursue self-autonomous driving and shipping options.
This partnership certainly makes a lot of long-term sense, especially with the recent spotlight on poor working conditions that many long-haul truckers face.
C.H. Robinson is in the seventh week of a cup-with-handle pattern and has seen strong support from its 50-day moving average during the basing period. Using the April 29 high as a reference, an entry point can be identified at 112.25.
