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Valued at a market cap of $11.2 billion, C.H. Robinson Worldwide, Inc. (CHRW) provides freight transportation and related logistics and supply chain services. The Eden Prairie, Minnesota-based company also operates a sourcing and distribution division under the Robinson Fresh brand, through which it buys, sells, and markets fresh fruits, vegetables, and other value-added perishable items.
Companies valued at $10 billion or more are typically classified as “large-cap stocks,” and CHRW fits the label perfectly, with its market cap exceeding this threshold, underscoring its size, influence, and dominance within the integrated freight & logistics industry. The company's core strength lies in its extensive global freight network and advanced logistics capabilities, making it one of the largest third-party logistics (3PL) providers in the world.It specializes in multi-modal transportation services, including truckload, less-than-truckload (LTL), ocean, air, and intermodal. These services are supported by its proprietary technology platform, Navisphere, which enables real-time visibility, data analytics, and efficient supply chain execution.
This freight and logistics company has dipped 17.9% from its 52-week high of $114.82, reached on Dec. 13, 2024. Shares of CHRW have declined 6.2% over the past three months, lagging behind the S&P 500 Index’s ($SPX) 5.6% return during the same time frame.
In the longer term, CHRW has gained 6.5% over the past 52 weeks, underperforming SPX’s 11.8% rise over the same time frame. Moreover, on a YTD basis, shares of CHRW are down 8.8%, compared to SPX’s 3.6% uptick.
To confirm its bearish trend, CHRW has been trading below its 200-day moving average since early April. However, it has remained above its 50-day moving average since mid-May, with minor fluctuations.
On Apr. 30, CHRW released its Q1 earnings results, and its shares closed up by 1.2% in the following trading session. Due to lower transportation and sourcing revenue, the company’s overall revenue declined 8.3% year-over-year to $4 billion and fell short of the consensus estimates by 6%. Yet, both its adjusted gross profit and adjusted operating margin expanded from the year-ago quarter and led to a 36% rise in its adjusted EPS to $1.17. The bottom-line figure surpassed the analyst estimates by a notable 14.7%. The results reflect solid progress in C.H. Robinson’s disciplined strategic execution, with improved margin performance despite ongoing challenges in the freight market.
C.H. Robinson has outpaced its rival, Expeditors International of Washington, Inc.’s (EXPD) 10.1% loss over the past 52 weeks. However, it has lagged behind EXPD’s 3.1% rise on a YTD basis.
Despite CHRW’s recent underperformance, analysts remain moderately optimistic about its prospects. The stock has a consensus rating of "Moderate Buy” from the 25 analysts covering it, and the mean price target of $109.46 suggests a 16.1% premium to its current price levels.
