At US$108, Is Expeditors International of Washington, Inc. (NASDAQ:EXPD) Worth Looking At Closely?

Expeditors International of Washington, Inc. (NASDAQ:EXPD) saw a significant share price rise of over 20% in the past couple of months on the NASDAQGS. 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. But what if there is still an opportunity to buy? Let’s take a look at Expeditors International of Washington’s outlook and value based on the most recent financial data to see if the opportunity still exists.

Check out the opportunities and risks within the US Logistics industry.

What's The Opportunity In Expeditors International of Washington?

According to my valuation model, Expeditors International of Washington seems to be fairly priced at around 0.4% below my intrinsic value, which means if you buy Expeditors International of Washington today, you’d be paying a reasonable price for it. And if you believe that the stock is really worth $108.30, then there’s not much of an upside to gain from mispricing. What's more, Expeditors International of Washington’s share price may be more stable over time (relative to the market), as indicated by its low beta.

What kind of growth will Expeditors International of Washington generate?

Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations. 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 Expeditors International of Washington, at least in the near future.

What This Means For You

Are you a shareholder? Currently, EXPD appears to be trading around its fair value, but given the uncertainty from negative returns in the future, this could be the right time to reduce the risk in your portfolio. Is your current exposure to the stock optimal 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 an eye on EXPD for a while, now may not be the most optimal time to buy, given it is trading around its fair value. The price seems 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 gel your views on EXPD should the price fluctuate below its true value.

So if you'd like to dive deeper into this stock, it's crucial to consider any risks it's facing. Be aware that Expeditors International of Washington is showing 2 warning signs in our investment analysis and 1 of those makes us a bit uncomfortable...

If you are no longer interested in Expeditors International of Washington, 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.