Let's talk about the popular Expeditors International of Washington, Inc. (NYSE:EXPD). The company's shares saw a double-digit share price rise of over 10% in the past couple of months on the NYSE. The company is now trading at yearly-high levels following the recent surge in its share price. 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. However, could the stock still be trading at a relatively cheap price? Let's examine Expeditors International of Washington's valuation and outlook in more detail to determine if there's still a bargain opportunity.
What Is Expeditors International of Washington Worth?
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 fair price for it. And if you believe the company's true value is $113.17, there's only an insignificant downside when the price falls to its real value. 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?
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. 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? EXPD seems fairly priced right now, but given the uncertainty from negative returns in the future, this could be the right time to reduce the risk in your portfolio. Is your current exposure to the stock beneficial 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 an eye on EXPD for a while, now may not be the most advantageous 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 gel your views on EXPD should the price fluctuate below its true value.
If you want to dive deeper into Expeditors International of Washington, you'd also look into what risks it is currently facing. In terms of investment risks, we've identified 1 warning sign with Expeditors International of Washington, and understanding this should be part of your investment process.
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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.