Is There Now An Opportunity In Expeditors International of Washington, Inc. (NASDAQ:EXPD)?

Today we're going to take a look at the well-established Expeditors International of Washington, Inc. (NASDAQ:EXPD). The company's stock led the NASDAQGS gainers with a relatively large price hike in the past couple of weeks. As a large-cap stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock. However, what if the stock is still a bargain? Let’s examine Expeditors International of Washington’s valuation and outlook in more detail to determine if there’s still a bargain opportunity.

View our latest analysis for Expeditors International of Washington

What is Expeditors International of Washington worth?

According to my valuation model, Expeditors International of Washington seems to be fairly priced at around 12.58% 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 $96.75, then there isn’t really any room for the share price grow beyond what it’s currently trading. In addition to this, Expeditors International of Washington has a low beta, which suggests its share price is less volatile than the wider market.

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. Expeditors International of Washington's earnings growth are expected to be in the teens in the upcoming years, indicating a solid future ahead. This should lead to 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 EXPD’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 confidence to invest in the company should the price drop below its fair value?

Are you a potential investor? If you’ve been keeping an eye on EXPD, 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.

In light of this, if you'd like to do more analysis on the company, it's vital to be informed of the risks involved. While conducting our analysis, we found that Expeditors International of Washington has 1 warning sign and it would be unwise to ignore this.

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This article by Simply Wall St is general in nature. 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.
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