Eden Prairie, Minnesota-based C.H. Robinson Worldwide, Inc. (CHRW) provides freight transportation and related logistics and supply chain services in the United States and internationally. The company has a market capitalization of $17.1 billion and operates through the North American Surface Transportation and Global Forwarding segments, and offers transportation and logistics services, including less-than-truckload transportation brokerage services, intermodal transportation, and more.
Companies with a market cap of $10 billion or more are typically referred to as “large-cap stocks.” CHRW fits squarely in that category, with a market cap above this threshold that reflects its size and influence in the integrated freight and logistics industry.
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Despite its strength, CHRW stock slipped 30.5% from its 52-week high of $210.33, reached on July 22. The stock is down 17.5% over the past three months, lagging behind the S&P 500 Index’s ($SPX) 4.7% rise during the same time frame.
www.barchart.comHowever, the scenario remains the same in the longer term. The stock has grown 9.7% over the past 52 weeks, while SPX delivered 16.7% returns over the same time frame, outpacing the stock.
CHRW has been trading below its 200-day and 50-day moving averages since July, indicating bearish momentum.
www.barchart.comThe stock’s underperformance over the past year could be linked to its weaker-than-average fundamentals. CHRW’s sales fell at a 2.3% annual rate over the last five years, indicating weak demand for its services. Moreover, the company has averaged a 7.5% gross margin over the last five years, which is below its sector average, revealing weaker structural profitability. Additionally, its ROIC has declined by a significant amount over the last few years, pointing to fewer profitable growth opportunities.
When stacked against its rival, J.B. Hunt Transport Services, Inc. (JBHT), CHRW has underperformed. Over the past year, JBHT stock has grown 72.5%.
Analysts’ view of CHRW stock is moderately bullish. Among the 25 analysts covering the stock, the overall consensus rating is “Moderate Buy.” Its mean price target of $199 offers a 36.1% upside potential.
On the date of publication, Aritra Gangopadhyay did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.