Today we’re going to take a look at the well-established Expeditors International of Washington, Inc. (NASDAQ:EXPD). The company’s stock received a lot of attention from a substantial price movement on the NASDAQGS over the last few months, increasing to $76.89 at one point, and dropping to the lows of $63.11. 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 $69.33 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.
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What’s the opportunity in Expeditors International of Washington?Expeditors International of Washington appears to be overvalued by 49.66% at the moment, based on my discounted cash flow valuation. The stock is currently priced at US$69.33 on the market compared to my intrinsic value of $46.32. Not the best news for investors looking to buy! 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 does the future of Expeditors International of Washington look like?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. Though in the case of Expeditors International of Washington, it is expected to deliver a relatively unexciting earnings growth of 3.1%, which doesn’t help build up its investment thesis. Growth doesn’t appear to be a main reason for a buy decision for the company, at least in the near term.
What this means for you:
Are you a shareholder? EXPD’s future growth appears to have been factored into the current share price, with shares trading above its fair value. However, this brings up another question – is now the right time to sell? 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. 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 an eye on EXPD for a while, now may not be the best time to enter into the stock. The price has surpassed its true value, which means there’s no upside from mispricing. However, the positive outlook means it’s worth diving deeper into other factors in order to take advantage of the next price drop.
Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Expeditors International of Washington. You can find everything you need to know about Expeditors International of Washington in the latest infographic research report. If you are no longer interested in Expeditors International of Washington, you can use our free platform to see my list of over 50 other stocks with a high growth potential.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at email@example.com.