Expeditors International of Washington, Inc. (NASDAQ:EXPD) saw a double-digit share price rise of over 10% in the past couple of months on the NASDAQGS. 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.
What’s the opportunity in Expeditors International of Washington?
According to my valuation model, Expeditors International of Washington seems to be fairly priced at around 15.95% above my 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 that the stock is really worth $76.22, then there isn’t really any room for the share price grow beyond what it’s currently trading. In addition to this, Expeditors International of Washington has a low beta, which suggests its share price is less volatile than the wider market.
What kind of growth will Expeditors International of Washington generate?
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. 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? EXPD’s optimistic future growth appears to have been factored into the current share price, with shares trading around its fair value. However, there are also other important factors which we haven’t considered today, such as the financial strength of the company. Have these factors changed since the last time you looked at the stock? Will you have enough conviction to buy should the price fluctuates below the true value?
Are you a potential investor? If you’ve been keeping an eye on EXPD, now may not be the most advantageous time to buy, given it is trading around its fair value. However, the optimistic prospect 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.
So if you’d like to dive deeper into this stock, it’s crucial to consider any risks it’s facing. You’d be interested to know, that we found 1 warning sign for Expeditors International of Washington and you’ll want to know about it.
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.
This article by Simply Wall St is general in nature. 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.