Here's Why Investors Should Add Expeditors Stock to Their Portfolio

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Here's Why Investors Should Add Expeditors Stock to Their Portfolio

Expeditors International of Washington, Inc. (EXPD) performed well in the past year and has the potential to sustain the momentum in the future. If you have not taken advantage of its share price appreciation yet, it’s time to do so.

Against this backdrop, let’s look at the factors that make this stock an attractive pick.

What Makes EXPD an Attractive Pick?

An Outperformer: A glimpse at the company’s price trend reveals that the stock has had an impressive run over the past year. Shares of EXPD have gained 43.4% in the past year, outperforming the 0.3% increase of the transportation-services industry it belongs to.

EXPD’s Six-Month YTD Price Comparison

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Solid Zacks Rank: EXPD presently sports a Zacks Rank #1 (Strong Buy). Our research shows that stocks with a Zacks Rank #1 or 2 (Buy) offer the best investment opportunities. Thus, the company is a compelling investment proposition at the moment.

Northward Estimate Revisions:The direction of estimate revisions serves as an important pointer when it comes to the price of a stock. The Zacks Consensus Estimate for second-quarter 2026 earnings has moved 7.59% north in the past 60 days. For the current year, the consensus mark for earnings has been revised 10.26% upward in the same time frame. The favorable estimate revisions indicate brokers’ confidence in the stock.

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Positive Earnings Surprise History: EXPD has an impressive earnings surprise history. The company’s earnings surpassed the Zacks Consensus Estimate in each of the last four quarters, delivering an average beat of 13.96%.

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Earnings Expectations: Earnings growth and stock price gains often indicate a company’s prospects. For second-quarter 2026, EXPD’s earnings are expected to improve 16.42% year over year. For 2026 and 2027, Expeditors’ earnings are expected to improve 11.93% and 2.02% year over year, respectively.

Growth Factors:E-commerce growth is a tailwind for Expeditors. E-commerce, which has gained importance, leads to greater demand for intermodal services – the long-haul movement of shipping containers from ship to rail and truck.E-commerce demand strength should continue to support growth of companies like Expeditors.

Expeditors' strong financial position supports its growth-by-acquisition strategy. The company’s efforts to reward its shareholders through dividend payments and share buybacks are commendable. Such moves instill investor confidence and positively impact the company's bottom line.

Other Stocks to Consider

Investors interested in the Zacks Transportation sector may consider ZTO Express ZTO and International Seaways INSW

ZTO Express currently carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

ZTO Express has an expected earnings growth rate of 15.15% for the current year. The Zacks Consensus Estimate for ZTO Express’ 2026 earnings has moved 6.1% north in the past 90 days. ZTO Express’ top line continues to benefit from the strong performance of the core express delivery services unit.

INSW currently sports a Zacks Rank #1.

INSW has an expected earnings growth rate of more than 100% for the current year. The company has an encouraging earnings surprise history. Its earnings topped the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average beat of 33.93%.

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Expeditors International of Washington, Inc. (EXPD): Free Stock Analysis Report
 
ZTO Express (Cayman) Inc. (ZTO): Free Stock Analysis Report
 
International Seaways Inc. (INSW): Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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