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

Expeditors International of Washington, Inc. (NASDAQ:EXPD) saw a decent share price growth in the teens level on the NASDAQGS over the last few months. 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, could the stock still be trading at a relatively cheap price? Let’s examine Expeditors International of Washington’s valuation and outlook in more detail to determine if there’s still a bargain opportunity.

See our latest analysis for Expeditors International of Washington

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 13.81% 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 $114.18, then there isn’t really any room for the share price grow beyond what it’s currently trading. Furthermore, Expeditors International of Washington’s low beta implies that the stock is less volatile than the wider market.

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? EXPD seems fairly priced right now, 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 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 EXPD should the price fluctuate below its true value.

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. To that end, you should learn about the 3 warning signs we've spotted with Expeditors International of Washington (including 2 which are a bit unpleasant).

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.