Wednesday, June 5, 2013

Why Expeditors International Is Poised to Bounce Back

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, global logistics company Expeditors International of Washington (NASDAQ: EXPD  ) 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.

Expeditors facts

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

Return on Equity (average, past 3 years)

18.8%

Cash/Debt

$1.4 billion / $0

Dividend Yield

1.5%

Competitors

CEVA Group

DHL International

UPS Supply Chain Solutions

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.

We've found another stock we are incredibly excited about -- excited enough to dub it "The Motley Fool's Top Stock for 2013." We have compiled a special free report for investors to uncover this stock today. The report is 100% free, but it won't be here forever, so click here to access it now.

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