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

Today we're going to take a look at the well-established Expeditors International of Washington, Inc. (NYSE:EXPD). The company's stock saw a double-digit share price rise of over 10% in the past couple of months on the NYSE. The recent jump in the share price has meant that the company is trading around its 52-week high. With many analysts covering the large-cap stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price. But what if there is still an opportunity to buy? 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's The Opportunity In Expeditors International of Washington?

The stock seems fairly valued at the moment according to our valuation model. It’s trading around 11.63% above our intrinsic value, which means if you buy Expeditors International of Washington today, you’d be paying a relatively reasonable price for it. And if you believe that the stock is really worth $113.17, 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 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. However, with a negative profit growth of -1.9% expected over the next couple of years, near-term growth certainly doesn’t appear to be a driver for a buy decision for Expeditors International of Washington. This certainty tips the risk-return scale towards higher risk.

What This Means For You

Are you a shareholder? Currently, EXPD appears to be trading around its fair value, but given the uncertainty from negative returns in the future, this could be the right time to de-risk 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 tabs 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. In addition to this, 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.

Keep in mind, when it comes to analysing a stock it's worth noting the risks involved. For example, we've discovered 1 warning sign that you should run your eye over to get a better picture of Expeditors International of Washington.

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.