A resistance level has formed in the chart of Expeditors International of Washington (EXPD) and a breakout may occur soon…
Expeditors International of Washington Inc. (EXPD) is a third-party logistics provider, mainly focused on international freight forwarding. It employs sophisticated IT systems and contracts with airlines and steamship carriers to move customers’ freight across the globe.
EXPD is benefiting from an uptick in airfreight revenues, which rose close to 50% in the first three quarters of 2020. Due to the pandemic driven cancellation of many passenger flights that typically carry freight, there was an increased usage of charters to handle customer freight needs.
The company has a healthy balance sheet with a $1.5 billion cash balance as of the end of the latest quarter, compared with only $357 million in long-term debt. EXPD also has a strong current ratio of 2.3 and a high return on equity of 25.4%.
In terms of growth, the company has a three-year revenue growth rate of 10.5% and a three-year earnings growth rate of 15.9%. EXPD is fairly valued with a trailing P/E of 25.71 and a forward P/E of 23.42.
EXPD’s stock has shown strong near, mid, and long-term momentum, which has resulted in a “Strong Buy” in our POWR Ratings system. This is reflected in its 1-year price chart below with added notations…
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