Is It Too Late 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 saw significant share price movement during recent months on the NASDAQGS, rising to highs of US$119 and falling 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$114 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

Is Expeditors International of Washington Still Cheap?

Expeditors International of Washington appears to be overvalued by 31% at the moment, based on my discounted cash flow valuation. The stock is currently priced at US$114 on the market compared to my intrinsic value of $87.60. This means that the opportunity to buy Expeditors International of Washington at a good price has disappeared! In addition to this, it seems like Expeditors International of Washington’s share price is quite stable, which could mean two things: firstly, it may take the share price a while to fall back down to an attractive buying range, and secondly, there may be less chances to buy low in the future once it reaches that value. This is because the stock is less volatile than the wider market given its low beta.

What kind of growth will Expeditors International of Washington 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. 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? If you believe EXPD 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 de-risk your portfolio. 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 tabs on EXPD for some time, now may not be the best time to enter into the stock. you may want to reconsider buying the stock at this time. Its price has risen beyond its true value, on top of a negative 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?

If you'd like to know more about Expeditors International of Washington as a business, it's important to be aware of any risks it's facing. For example, we've found that Expeditors International of Washington has 2 warning signs (1 is concerning!) that deserve your attention before going any further with your analysis.

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.