Is It Time To Consider Buying Expeditors International of Washington, Inc. (NASDAQ:EXPD)?

Let's talk about the popular Expeditors International of Washington, Inc. (NASDAQ:EXPD). The company's shares received a lot of attention from a substantial price movement on the NASDAQGS over the last few months, increasing to US$119 at one point, and dropping to the lows of US$104. 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 Expeditors International of Washington's current trading price of US$106 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 Expeditors International of Washington’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 Expeditors International of Washington

What Is Expeditors International of Washington Worth?

The stock seems fairly valued at the moment according to my valuation model. It’s trading around 12.80% above my intrinsic value, which means if you buy Expeditors International of Washington today, you’d be paying a relatively fair price for it. And if you believe the company’s true value is $94.35, then there isn’t really any room for the share price grow beyond what it’s currently trading. 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 does the future of Expeditors International of Washington look like?

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. Though in the case of Expeditors International of Washington, it is expected to deliver a highly negative earnings growth in the next few years, which doesn’t help build up its investment thesis. It appears that risk of future uncertainty is high, at least in the near term.

What This Means For You

Are you a shareholder? EXPD 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 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 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 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. For example - Expeditors International of Washington has 1 warning sign we think you should be aware of.

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.