Neharika Jain
3 min read
In This Article:
Valued at a market cap of $11.2 billion, C.H. Robinson Worldwide, Inc. (CHRW) provides freight transportation and related logistics and supply chain services. The Eden Prairie, Minnesota-based company also operates a sourcing and distribution division under the Robinson Fresh brand, through which it buys, sells, and markets fresh fruits, vegetables, and other value-added perishable items.
Companies valued at $10 billion or more are typically classified as “large-cap stocks,” and CHRW fits the label perfectly, with its market cap exceeding this threshold, underscoring its size, influence, and dominance within the integrated freight & logistics industry. The company's core strength lies in its extensive global freight network and advanced logistics capabilities, making it one of the largest third-party logistics (3PL) providers in the world.It specializes in multi-modal transportation services, including truckload, less-than-truckload (LTL), ocean, air, and intermodal. These services are supported by its proprietary technology platform, Navisphere, which enables real-time visibility, data analytics, and efficient supply chain execution.
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This freight and logistics company has dipped 17.9% from its 52-week high of $114.82, reached on Dec. 13, 2024. Shares of CHRW have declined 6.2% over the past three months, lagging behind the S&P 500 Index’s ($SPX) 5.6% return during the same time frame.
In the longer term, CHRW has gained 6.5% over the past 52 weeks, underperforming SPX’s 11.8% rise over the same time frame. Moreover, on a YTD basis, shares of CHRW are down 8.8%, compared to SPX’s 3.6% uptick.
To confirm its bearish trend, CHRW has been trading below its 200-day moving average since early April. However, it has remained above its 50-day moving average since mid-May, with minor fluctuations.
On Apr. 30, CHRW released its Q1 earnings results, and its shares closed up by 1.2% in the following trading session. Due to lower transportation and sourcing revenue, the company’s overall revenue declined 8.3% year-over-year to $4 billion and fell short of the consensus estimates by 6%. Yet, both its adjusted gross profit and adjusted operating margin expanded from the year-ago quarter and led to a 36% rise in its adjusted EPS to $1.17. The bottom-line figure surpassed the analyst estimates by a notable 14.7%. The results reflect solid progress in C.H. Robinson’s disciplined strategic execution, with improved margin performance despite ongoing challenges in the freight market.
