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Expeditors International of Washington, Inc. (NYSE:EXPD) received a lot of attention from a substantial price movement on the NYSE over the last few months, increasing to US$131 at one point, and dropping to the lows of US$118. 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 US$121 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.
Check out our latest analysis for Expeditors International of Washington
Is Expeditors International of Washington Still Cheap?
According to our valuation model, Expeditors International of Washington seems to be fairly priced at around 7.2% below our intrinsic value, which means if you buy Expeditors International of Washington today, you’d be paying a reasonable price for it. And if you believe that the stock is really worth $130.74, then there’s not much of an upside to gain from mispricing. What's more, Expeditors International of Washington’s share price may be more stable over time (relative to the market), as indicated by 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. Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. Expeditors International of Washington's earnings growth are expected to be in the teens in the upcoming years, indicating a solid future ahead. This should lead to robust cash flows, feeding into a higher share value.
What This Means For You
Are you a shareholder? It seems like the market has already priced in EXPD’s positive outlook, with shares trading around its fair value. However, there are also other important factors which we haven’t considered today, such as the track record of its management team. Have these factors changed since the last time you looked at the stock? Will you have enough confidence to invest in the company should the price drop below its fair value?
Are you a potential investor? If you’ve been keeping tabs on EXPD, now may not be the most advantageous time to buy, given it is trading around its fair value. However, the positive outlook is encouraging for the company, which means it’s worth further examining other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.