Expeditors International (EXPD): Assessing Valuation Following Strong Q2 Results and Ongoing Analyst Caution

Expeditors International of Washington just posted a 9% jump in year-over-year revenue for Q2, alongside an 8% lift in earnings per share. That is the kind of performance you would expect to grab headlines, especially in a tough logistics climate marked by shrinking freight volumes and global uncertainty. Yet, even with these surprises, investor caution lingers. The company's shares closed up 2.1% the day after the earnings release, showing a spark of renewed interest, but not the full-throttle rally some might have anticipated.

In the bigger picture, Expeditors International of Washington has had a mixed run this year. After trailing the Nasdaq for much of 2025 because of freight and tariff worries, the stock started to gather some momentum recently, outperforming sector rival FedEx. Even so, it has lost nearly 4% over the past year despite a year-to-date gain of 11%. Long-term shareholders will appreciate the stock’s strong three- and five-year returns above 40%, but recent analyst skepticism has kept enthusiasm in check.

After Q2’s growth story and a modest market reaction, the big question remains: is Expeditors International of Washington undervalued after this dip, or is the market already baking in all the upside?

Price-to-Earnings of 19.4x: Is it justified?

Expeditors International of Washington is currently trading at a Price-to-Earnings (P/E) ratio of 19.4, which is higher than both its peer group average (17x) and the global logistics industry average (16.3x). This suggests the market is attaching a premium to the company compared to its competitors, despite its recent growth challenges.

The P/E ratio reflects how much investors are willing to pay for each dollar of company earnings. In the logistics sector, this multiple can signal expectations for future profitability, growth potential, and business resilience. A higher multiple may indicate confidence in ongoing earnings power or an expectation of continued industry outperformance.

In this case, investors may be overestimating future performance, as recent analyst expectations call for flat to declining earnings despite a strong past growth spurt. The elevated P/E ratio does not appear fully supported by near-term profit growth forecasts, suggesting the stock could be overvalued based on this metric.

Result: Fair Value of $121.84 (OVERVALUED)

See our latest analysis for Expeditors International of Washington.

However, persistent flat revenue growth and analyst price targets that are below the current share price could temper any near-term optimism for Expeditors International.

Find out about the key risks to this Expeditors International of Washington narrative.

Another View: What Does Our DCF Model Say?

While the market’s pricing looks steep compared to industry norms, our SWS DCF model comes to a different conclusion. It suggests the shares might actually be undervalued. Which method should investors trust more right now?

Look into how the SWS DCF model arrives at its fair value.

Stay updated when valuation signals shift by adding Expeditors International of Washington to your watchlist or portfolio. Alternatively, explore our screener to discover other companies that fit your criteria.

Build Your Own Expeditors International of Washington Narrative

If you would rather dig into the details yourself or feel that a different angle tells the story better, you can easily construct your own perspective in just a few minutes. Do it your way

A great starting point for your Expeditors International of Washington research is our analysis highlighting 2 key rewards and 2 important warning signs that could impact your investment decision.

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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.

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