Expeditors International of Washington EXPD shares have performed impressively on the bourse of late. Shares of this Seattle, WA-based company have surged 43.4% over the past year, outperforming the Zacks Transportation - Services industry’s 21.9% growth.
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Given the impressive price performance, let's take a deeper look at the factors driving growth at this leading third-party logistics (3PL) provider, which currently sports a Zacks Rank #1 (Strong Buy), and assess its potential for continued gains.
The continued expansion of e-commerce remains a favorable tailwind for Expeditors. As online retailers and consumers increasingly demand faster, more reliable deliveries, the need for efficient global logistics solutions has intensified. This trend supports demand for intermodal transportation, where goods are moved seamlessly across ships, railways and trucks. This allows Expeditors to leverage its extensive freight forwarding network and expertise in managing complex supply chains. Sustained e-commerce activity should therefore continue to create opportunities for volume growth and service expansion.
The company's strong balance sheet further enhances its long-term growth prospects by providing the flexibility to pursue strategic acquisitions and invest in its operations without placing undue strain on its finances. Its disciplined approach to capital allocation enables the company to capitalize on growth opportunities while maintaining financial resilience amid changing market conditions.
Moreover, EXPD's commitment to returning capital to shareholders through dividends and share repurchases reflects management's confidence in its cash-generating ability. These shareholder-friendly initiatives not only enhance investor returns but also reinforce market confidence in Expeditors' ability to balance growth investments with shareholder rewards, supporting its overall investment appeal.
Estimate Revisions to Head North
Driven by the positives discussed above, the Zacks Consensus Estimate for the full-year 2026 and 2027 has been revised 10.1% and 4.3%, respectively, upward over the past 60 days.
Other Stocks to Consider
Investors interested in the Zacks Transportation sector may consider Star Bulk Carriers Corp. SBLK and Teekay Tankers Ltd TNK.
SBLK currently sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Star Bulk Carriers has an expected earnings growth rate of more than 100% for the current year. The company has an encouraging earnings surprise history. Its earnings outpaced the Zacks Consensus Estimate in three of the trailing four quarters and met once in the remaining, delivering an average beat of 75.3%.
Teekay Tankers Ltd currently sports a Zacks Rank #1.
TNK has an expected earnings growth rate of 98% 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 10.2%.
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Expeditors International of Washington, Inc. (EXPD): Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).