Shares of C.H. Robinson Worldwide, Inc. (NASDAQ:) have performed well, outperforming the industry in a year. The stock has rallied 6.9%, as against a 5.1% decline of the industry it belongs to.
C.H. Robinson has an impressive product portfolio and aims to expand globally through mergers. To this end, the company has made a series of acquisitions in the recent past. The latest acquisition of Milgram & Company was completed in August. The buyout is likely to boost the company’s global presence and will be accretive in 2018.
Last year, the company acquired APC Logistics. This deal has boosted C.H. Robinson’s presence in the Australia-New Zealand region. Also, it acquired internet-based freight broking enterprise, Freightquote.com, in January 2015, besides previously acquiring the logistics service providers — Phoenix International and Apreo Logistics S.A. These buyouts are expected to boost the company’s growth in the long run.
Additionally, C.H. Robinson has an impressive earnings history having surpassed estimates in three of the preceding four quarters. Notably, the company also performed well in the third quarter reporting better-than-expected revenues and earnings per share. The top line also improved on a year-over-year basis, driven by volume growth across all transportation services of the company.
Furthermore, the company’s efforts to reward shareholders through dividends and share buybacks raise optimism in the stock. In December 2016, the company’s board approved a 4.7% hike in its quarterly cash dividend.
In view of these positives, we believe it is wise to retain C.H. Robinson stock for now.
Zacks Rank & Key PicksC.H. Robinson carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader
Transportation sector are International Consolidated Airlines Group (LON:) SA (OTC:) , SkyWest, Inc. (NASDAQ:) and Deutsche Lufthansa (DE:) AG (OTC:) . While International Consolidated Airlines and SkyWest sport a Zacks Rank #1 (Strong Buy), Deutsche Lufthansa holds a Zacks Rank #2 (Buy). You can see
the complete list of today’s Zacks #1 Rank stocks here.Shares of International Consolidated Airlines, SkyWest and Deutsche Lufthansa have surged more than 42%, 35% and 100%, respectively, in a year.
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See Them Free>>SkyWest, Inc. (SKYW): Free Stock Analysis ReportDeutsche Lufthansa AG (DLAKY): Free Stock Analysis ReportInternational Consolidated Airlines Group SA (ICAGY): Free Stock Analysis ReportC.H. Robinson Worldwide, Inc. (CHRW): Free Stock Analysis ReportOriginal postZacks Investment Research
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