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C.H. Robinson (CHRW) Stock Gains 32% in a Year: Here's Why

Zacks Equity Research
Updated
Why Is RLI Corp. (RLI) Up 3.4% Since Last Earnings Report?
RLI Corp. (RLI) reported earnings 30 days ago. What's next for the stock? We take a look at earnings estimates for some clues.

Shares of C.H. Robinson Worldwide, Inc. CHRW have surged 32% in a year’s time, outperforming the industry’s 8.7% increase.

Reasons Behind the Price Rise

C.H. Robinson has an impressive earnings surprise history, having outshined the Zacks Consensus Estimate in three of the trailing four quarters. The average earnings beat is 2.2%.

The company’s efforts to reward shareholders are also encouraging. In December 2017, C.H. Robinson’s board of directors approved a 2.2% hike in its quarterly cash dividend to 46 cents per share (or $1.84 annually). During the first quarter of 2018, it returned $134.7 million to shareholders through a combination of dividends and share repurchases.

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Moreover, C.H. Robinson recently boosted its buyback program. The company’s board has added another 15 million shares to the existing share repurchase authorization of 1.2 million shares, approved in 2013.

Increased freight demand and lower tax rates are encouraging too. The improvement in operating cash flow is an added a positive. We are impressed by the company's grow-by-acquisition policy as well. To this end, the company acquired Milgram & Company for around $62 million CAD (approximately $50 million USD), which in turn, expanded C.H. Robinson’s global presence. This latest acquisition is in line with the company’s continued efforts to expand globally through mergers.

Zacks Rank & Key Picks

C.H. Robinson carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader Transportation sector are SkyWest, Inc. SKYW, Expeditors International of Washington, Inc. EXPD and GATX Corporation GATX. While Expeditors sports a Zacks Rank #1 (Strong Buy), SkyWest and GATX carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here. 

Shares of SkyWest, Expeditors and GATX have rallied more than 67%, 36% and 22%, respectively, in a year.

The Hottest Tech Mega-Trend of All

Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.

See Zacks' 3 Best Stocks to Play This Trend >>  


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SkyWest, Inc. (SKYW) : Free Stock Analysis Report
 
GATX Corporation (GATX) : Free Stock Analysis Report
 
C.H. Robinson Worldwide, Inc. (CHRW) : Free Stock Analysis Report
 
Expeditors International of Washington, Inc. (EXPD) : Free Stock Analysis Report
 
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