Should You Buy the Dip in C.H. Robinson Worldwide?

NASDAQ: CHRW | C.H. Robinson Worldwide Inc. News, Ratings, and Charts

CHRW – The stock of global logistics and freight transportation services provider C.H. Robinson Worldwide (CHRW) has slumped in price so far this year due to concerns surrounding rising shipping costs. So, as global supply chain bottlenecks continue, will CHRW be able to regain momentum in the near term? Read more to learn our view.

C.H. Robinson Worldwide, Inc. (CHRW) in Eden Prairie, Minn., provides logistics solutions and freight transportation services globally. It is one of the largest logistics companies in the world, with more than $28 billion in freight under management and more than 20 million shipments annually. The company operates in two segments: North American Surface Transportation; and Global Forwarding. However, CHRW has an ISS Governance QualityScore of 9, indicating high governance risk.

The stock has declined 17.6% in price year-to-date and 14.8% over the past five days to close yesterday’s trading session at $88.73.

The bearish investor sentiment can be attributed to the global supply chain disruption, which has increased shipping costs considerably, thereby shrinking CHRW’s profit margins.

Here is what could shape CHRW’s performance in the near term:

Mixed Growth Prospects

Analysts expect CHRW’s revenues to increase 24.4% in its fiscal 2022 first quarter (ending March 2022), 10.6% in the next quarter, and 5.7% in fiscal 2022. The company’s EPS is expected to improve 20.6% in the current quarter, 11.7% in fiscal 2022 second quarter (ending June 2022), and marginally in the current year.

However, the Street expects CHRW’s revenues and EPS to slump 6.9% and 8.5%, respectively, next year.

Low Valuation

In terms of forward non-GAAP P/E, CHRW is currently trading at 14.06x, which is 25.7% lower than the 18.93 industry average. Its 1.32 forward non-GAAP PEG multiple is 9.5% lower than the 1.46 industry average, while its 11.25 forward EV/EBITDA ratio is 5.1% lower than the 11.85 industry average.

In addition, CHRW’s forward Price/Sales and Price/Cash Flow multiples of 0.47 and 12.57, respectively, compare with the 1.48 and 14.88 industry averages.

Consensus Rating and Price Target Indicate Potential Upside

Of  16 Wall Street analysts that rated CHRW, seven rated it Buy while eight rated it Hold and one rated it Sell. The 12-month median price target of $107.93 indicates a 21.6% potential upside from yesterday’s closing price of $88.73. The price targets range from a low of $65.00 to a high of $180.00.

POWR Ratings Reflect Uncertainty

CHRW has an overall C rating, which equates to Neutral in our proprietary POWR Ratings system. The POWR Ratings are calculated by considering 118 distinct factors, with each factor weighted to an optimal degree.

CHRW has a C grade for Momentum and Quality. It is currently trading above its 50-day and 200-day moving averages of $102.90 and $95.94, respectively, indicating a downtrend, and in sync with the Momentum grade. In addition, CHRW’s 3.65% net income margin is 43.4% higher than the 6.46% industry average, justifying the Quality grade.

Among 22 stocks in the Trucking Freight industry, CHRW is currently ranked #18.

Beyond what I have stated above, view CHRW ratings for Growth, Sentiment, Stability, and Value here.

Bottom Line

CHRW’s total revenues and EPS increased 42.9% and 61.1%, respectively, year-over-year to $6.50 billion and $1.74 in its fiscal fourth quarter, ended Dec. 31, 2021. However, the company missed the $1.86 consensus EPS estimate by 6.4% due to an increase in operating expenses.

As global supply chain disruptions continue, CHRW’s profit margins are expected to take a hit in the coming months. Thus, we think investors should wait until CHRW’s profit margins stabilize before investing in the stock.

How Does C.H. Robinson Worldwide, Inc. (CHRW) Stack Up Against its Peers?

While CHRW has a C rating in our proprietary rating system, one might want to consider looking at its industry peers, Schneider National, Inc. (SNDR), USA Truck, Inc. (USAK), and ArcBest Corporation (ARCB), which have a B (Buy) rating.

Note that SNDR is one of the few stocks handpicked currently in the Reitmeister Total Return portfolio. Learn more here.

Note that USAK is one of the few stocks handpicked by our Chief Value Strategist, Steve Reitmeister, currently in the POWR Value portfolio. Learn more here.

Want More Great Investing Ideas?

3 Stocks to DOUBLE This Year


CHRW shares were trading at $87.80 per share on Monday morning, down $0.93 (-1.05%). Year-to-date, CHRW has declined -18.42%, versus a -5.26% rise in the benchmark S&P 500 index during the same period.


About the Author: Aditi Ganguly


Aditi is an experienced content developer and financial writer who is passionate about helping investors understand the do’s and don'ts of investing. She has a keen interest in the stock market and has a fundamental approach when analyzing equities. More...


More Resources for the Stocks in this Article

TickerPOWR RatingIndustry RankRank in Industry
CHRWGet RatingGet RatingGet Rating
SNDRGet RatingGet RatingGet Rating
USAKGet RatingGet RatingGet Rating
ARCBGet RatingGet RatingGet Rating

Most Popular Stories on StockNews.com


How Low Will Stocks Go?

The S&P 500 (SPY) is testing the 200 day moving average with fears on tariffs and GDP that could push them even lower. Now is a good time to hear what 40 year investment veteran Steve Reitmeister says about the market outlook and odds of bear market.

Yelp Inc. (YELP) vs. TripAdvisor, Inc. (TRIP): Which Online Review Platform Offers Better Investment Potential?

The online review industry is anticipated to be bolstered by increasing penetration rates of connected devices, easy availability of high-speed internet, and advanced technology. To analyze which stock offers better investment potential, let’s compare online review platform stocks Yelp (YELP) and Tripadvisor (TRIP). Read on to find out…

3 Healthcare Stocks Tackling America’s Biggest Medical Challenges

From breakthrough treatments to AI-driven diagnostics, healthcare is evolving faster than ever. With increasing healthcare spending and innovative technologies transforming patient care, companies like AbbVie (ABBV), Gilead Sciences (GILD), and Bristol-Myers Squibb (BMY) are tackling some of the biggest challenges and could be poised for long-term growth. Read more…

Vimeo vs. Olo Inc.: Which Software Stock Is Poised for Greater Growth?

A rising adoption of software solutions by several industries is brightening the prospects for the software industry. Amid this, let’s compare Vimeo (VMEO) and Olo Inc. (OLO) to analyze which software stock is poised for greater growth. Read on to find out…

Why is Stock Market Outlook So Uncertain?

The S&P 500 (SPY) has quickly pushed back from the highs and once again on the verge of a break below the 100 day moving average. Why is this happening? And what comes next? 40 year investment veteran Steve Reitmeister shares his view and top stocks in the commentary that follows...

Read More Stories

More C.H. Robinson Worldwide Inc. (CHRW) News View All

Event/Date Symbol News Detail Start Price End Price Change POWR Rating
Loading, please wait...
View All CHRW News