Here's Why You Should Add Expeditors Stock to Your Portfolio Now

Zacks Equity Research

Tue, Mar 18, 2025, 8:51 AM 3 min read

Expeditors International of Washington EXPD is benefiting from strong demand in Asia, driving impressive top-line growth. The company's shareholder-friendly initiatives are also noteworthy, reflecting its commitment to delivering value to investors. Consequently, if you haven’t taken advantage of the share price appreciation yet, it’s the right time you add the stock to your portfolio.

Factors Favoring EXPD Stock

Robust Price Performance: The company’s price trend reveals that its shares have risen 5.5% year to date against the Transportation - Services industry’s 5.3% decline.

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Northward Estimate Revisions: The Zacks Consensus Estimate for earnings per share is robust for first-quarter and second-quarter 2025 apart from the full-year 2025 & 2026. The favorable estimate revisions indicate brokers’ confidence in the stock.

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Expeditors’Zacks Rank: EXPD currently carries a Zacks Rank #2 (Buy).

Positive Earnings Surprise History: Expeditors has an encouraging earnings surprise history. The company's earnings outpaced the Zacks Consensus Estimate in three of the trailing four quarters and met once, delivering an average surprise of 11.6%.

GrowthFactors: Expeditors’ December-quarter results demonstrate its resilience in navigating challenging conditions. Despite limited air capacity, the company has skillfully adapted, ensuring customer freight continues to move efficiently. This ability to perform under pressure highlights Expeditors' strategic focus and reinforces its reputation as a reliable partner in volatile markets. Additionally, strong demand for technology products provides a favorable boost for EXPD.

EXPD’s commitment to returning capital to its shareholders through stock repurchases and dividend payments is commendable. In 2024, the company repurchased 7.1 million shares at an average price of $119.47 per share compared to 12.1 million shares repurchased in 2023 at a lower average price of $114.68 per share. While the number of shares repurchased was slightly lower in 2024, the higher average price indicates a more strategic and measured approach. Additionally, the 5.8% increase in the dividend payout in 2024 to $1.46 reflects strong cash flow and underscores a positive outlook for the company’s future growth and financial health.