At US$94.61, Is It Time To Put C.H. Robinson Worldwide, Inc. (NASDAQ:CHRW) On Your Watch List?

Today we're going to take a look at the well-established C.H. Robinson Worldwide, Inc. (NASDAQ:CHRW). The company's stock saw significant share price movement during recent months on the NASDAQGS, rising to highs of US$105 and falling to the lows of US$89.73. 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$94.61 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.

View our latest analysis for C.H. Robinson Worldwide

Is C.H. Robinson Worldwide Still Cheap?

The stock seems fairly valued at the moment according to my valuation model. It’s trading around 3.53% above my 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 $91.38, then there isn’t really any room for the share price grow beyond what it’s currently trading. What's more, C.H. Robinson Worldwide’s share price may be more stable over time (relative to the market), as indicated by its low beta.

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

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. However, with a negative profit growth of -20% expected over the next couple of years, near-term growth certainly doesn’t appear to be a driver for a buy decision for C.H. Robinson Worldwide. This certainty tips the risk-return scale towards higher risk.

What This Means For You

Are you a shareholder? CHRW seems fairly priced right now, but given the uncertainty from negative returns in the future, this could be the right time to de-risk your portfolio. Is your current exposure to the stock beneficial for your total portfolio? And is the opportunity cost of holding a negative-outlook stock too high? Before you make a decision on the stock, take a look at whether its fundamentals have changed.

Are you a potential investor? If you’ve been keeping tabs on CHRW for a while, now may not be the most optimal time to buy, given it is trading around its fair value. The stock appears to be trading at fair value, which means there’s less benefit from mispricing. Furthermore, the negative growth outlook increases the risk of holding the stock. However, there are also other important factors we haven’t considered today, which can help crystalize your views on CHRW should the price fluctuate below its true value.

If you'd like to know more about C.H. Robinson Worldwide as a business, it's important to be aware of any risks it's facing. Case in point: We've spotted 2 warning signs for C.H. Robinson Worldwide you should be mindful of and 1 of these is concerning.

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.