At US$103, Is It Time To Put C.H. Robinson Worldwide, Inc. (NASDAQ:CHRW) On Your Watch List?

C.H. Robinson Worldwide, Inc. (NASDAQ:CHRW) saw a decent share price growth in the teens level on the NASDAQGS over the last few months. With many analysts covering the large-cap stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price. However, could the stock still be trading at a relatively cheap price? Today I will analyse the most recent data on C.H. Robinson Worldwide’s outlook and valuation to see if the opportunity still exists.

Check out our latest analysis for C.H. Robinson Worldwide

What Is C.H. Robinson Worldwide Worth?

The stock is currently trading at US$103 on the share market, which means it is overvalued by 32% compared to my intrinsic value of $78.13. Not the best news for investors looking to buy! Another thing to keep in mind is that C.H. Robinson Worldwide’s share price is quite stable relative to the market, as indicated by its low beta. This means that if you believe the current share price should move towards its intrinsic value over time, a low beta could suggest it is not likely to reach that level anytime soon, and once it’s there, it may be hard to fall back down into an attractive buying range again.

What kind of growth will C.H. Robinson Worldwide generate?

Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. However, with an extremely negative double-digit change in profit expected over the next couple of years, near-term growth is certainly not a driver of a buy decision. It seems like high uncertainty is on the cards for C.H. Robinson Worldwide, at least in the near future.

What This Means For You

Are you a shareholder? If you believe CHRW should trade below its current price, selling high and buying it back up again when its price falls towards its real value can be profitable. Given the risk from a negative growth outlook, this could be the right time to reduce your total portfolio risk. But before you make this decision, take a look at whether its fundamentals have changed.

Are you a potential investor? If you’ve been keeping an eye on CHRW for a while, now may not be the best time to enter into the stock. Price climbed passed its true value, in addition to a risky future outlook. However, there are also other important factors which we haven’t considered today, such as the financial strength of the company. Should the price fall in the future, will you be well-informed enough to buy?

So while earnings quality is important, it's equally important to consider the risks facing C.H. Robinson Worldwide at this point in time. When we did our research, we found 3 warning signs for C.H. Robinson Worldwide (1 is a bit concerning!) that we believe deserve your full attention.

If you are no longer interested in C.H. Robinson Worldwide, you can use our free platform to see our list of over 50 other stocks with a high growth potential.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.