At US$105, Is It Time To Put C.H. Robinson Worldwide, Inc. (NASDAQ:CHRW) On Your Watch List?

C.H. Robinson Worldwide, Inc. (NASDAQ:CHRW) received a lot of attention from a substantial price movement on the NASDAQGS over the last few months, increasing to US$112 at one point, and dropping to the lows of US$99.18. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether C.H. Robinson Worldwide's current trading price of US$105 reflective of the actual value of the large-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at C.H. Robinson Worldwide’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.

See our latest analysis for C.H. Robinson Worldwide

What Is C.H. Robinson Worldwide Worth?

According to our valuation model, C.H. Robinson Worldwide seems to be fairly priced at around 19.57% above our intrinsic value, which means if you buy C.H. Robinson Worldwide today, you’d be paying a relatively reasonable price for it. And if you believe that the stock is really worth $88.02, there’s only an insignificant downside when the price falls to its real value. In addition to this, C.H. Robinson Worldwide has a low beta, which suggests its share price is less volatile than the wider market.

Can we expect growth from C.H. Robinson Worldwide?

Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. 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. C.H. Robinson Worldwide's earnings over the next few years are expected to increase by 84%, indicating a highly optimistic future ahead. This should lead to more robust cash flows, feeding into a higher share value.

What This Means For You

Are you a shareholder? It seems like the market has already priced in CHRW’s positive outlook, with shares trading around its fair value. However, there are also other important factors which we haven’t considered today, such as the track record of its management team. Have these factors changed since the last time you looked at the stock? Will you have enough conviction to buy should the price fluctuates below the true value?

Are you a potential investor? If you’ve been keeping tabs on CHRW, now may not be the most advantageous time to buy, given it is trading around its fair value. However, the positive outlook is encouraging for the company, which means it’s worth further examining other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.

So if you'd like to dive deeper into this stock, it's crucial to consider any risks it's facing. To help with this, we've discovered 2 warning signs (1 is a bit concerning!) that you ought to be aware of before buying any shares in C.H. Robinson Worldwide.

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.