Why Expeditors International Is Poised to Bounce Back

Updated

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, global logistics company has earned a respected four-star ranking.

With that in mind, let's take a closer look at Expeditors and see what CAPS investors are saying about the stock right now.

Expeditorsfacts

Headquarters (founded)

Seattle, Wash. (1979)

Market Cap

$7.9 billion

Industry

Air freight and logistics

Trailing-12-Month Revenue

$6.0 billion

Management

Chairman/CEO Peter Rose

President/COO R. Jordan Gates

18.8%

Cash/Debt

$1.4 billion / $0

Dividend Yield

1.5%

Competitors


Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 95% of the 550 members who have rated Expeditors believe the stock will outperform the S&P 500 going forward.

Earlier today, one of those Fools, TMFTailwind, succinctly summed up the Expeditors bull case for our community:

Similar to CH Robinson, EXPD is another [third-party logistics] carrier that is poised to outperform.

- Asset-light business with no debt and plenty of cash
-Long-term network effect that is valuable to customers
-ROIC consistently greater than 20%
-Dividend that is up 75% in four years

EXPD has lagged the market for the past two years, which (to me, at least) means that now is the time to buy. Its current valuation is a great entry point -- EXPD's P/E and P/B ratios are the lowest that they've been in ten years.

If you want market-thumping returns, you need to put together the best portfolio you can. Of course, despite a strong four-star rating, Expeditors may not be your top choice.

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The article Why Expeditors International Is Poised to Bounce Back originally appeared on Fool.com.

Fool contributor Brian Pacampara has no position in any stocks mentioned. The Motley Fool owns shares of Expeditors International of Washington. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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Originally published