C.H. Robinson Worldwide, Inc.
Other trees have taken a look at the logistics industry in the past, making grave assertions about its future. I find the logistics industry promising as the world economy continues to improve amid greater difficulties in Europe. Let us look at two well-developed international shipping firms like Expeditors International (NASDAQ: EXPD) and CH Robinson (NASDAQ: CHRW), and a regional company like Forward (NASDAQ: FWRD).
Expeditors is a global more »
In what appears to be an unending period of low interest rates, many conservative investors looking to protect their purchasing power are no longer having their needs met by the credit market. Instead of buying a bond that may barely keep pace with inflation, investors should turn toward conservative equities that pay a solid dividend.
A solid dividend may be defined as one that increases each year and has significant more »
The world economic crisis has hit logistics companies differently. The logistics trend is shifting from priority services, such as airlines, towards cheaper and slower forms of delivery like ground transport. This has affected traditional logistics companies such as FedEx (NYSE: FDX), United Parcel Service (NYSE: UPS) and CH Robinson (NASDAQ: CHRW) in diverse ways. Let’s take a look at each for further analysis.
UPS: The e-commerce solution
UPS, as more »
The incredible bull market fed by Ben Bernanke's monetary stimulus has inflated the prices of many stocks well beyond their intrinsic value. Although few bargains remain, many investors cannot bring themselves to move to a full cash position; the market could continue its upward climb for another year or more, causing investors who stay on the sidelines to miss out.
The solution is not to buy the high-flying growth more »
XPO Logistics (NYSE: XPO) is a non-asset based transportation provider, a company that rallied 21.5% in the last week alone. In my opinion, XPO Logistics is the best stock in the market, my largest single holding, and my Motley Fool CAPS top pick. In my book, I called XPO Logistics “the investment of the decade” and gave the stock a $100 price target. Here’s why.
An Ambitious Plan more »
Being a market leader in a loss-making business is a recipe for disaster. Having the largest market share in an industry with declining profitability is not that much better, with revenue growth being offset by margin compression. C.H. Robinson Worldwide (NASDAQ: CHRW), one of the largest third-party logistics companies globally -- handling shipments for more than 42,000 customers through a network of more than 275 offices -- is in such more »
Lately, I’ve been working on an article about companies with strong competitive advantages. Part of the research for this involved making a list of dividend growth stocks that have a wide moat rating from Morningstar. As a part of the article, I was planning on doing a brief summary of some companies that were close to a five star rating. During this process, I stumbled across C.H. Robinson more »
The world economic crisis has hit logistics companies differently. The logistics trend is shifting from priority services such as airline cargos towards cheaper and slower forms of delivery as ground transport. This has affected traditional logistics companies such as FedEx (NYSE: FDX), United Parcel Service (NYSE: UPS) and CH Robinson (NASDAQ: CHRW) in diverse ways. Let’s take a look at each of them for further analysis.
FedEx more »
Improving fundamentals for the trucking industry have attracted a lot of attention from investors. Favorable market dynamics are at play that support improving returns and mid-teen earnings growth on the back of incremental margin expansion from modest tonnage growth, pricing gains, and relatively benign unit costs.
However, this theme does not present a straightforward investing idea. Within the trucking industry, we have two main types of players: asset owners and more »
Amid the rapid growth of the global delivery market, FedEx (NYSE: FDX) has been fulfilling an ever-larger share of ground deliveries. But while that expansion should yield strong earnings growth for the company going forward, FedEx's shares have dropped more than 5% in the past few weeks. Is this a tremendous buying opportunity, or should prospective investors wait for shares to correct further?
The State of FedEx: 2013
Currently more »
Uti Worldwide (NASDAQ: UTIW) has had a decent share price performance since the beginning of the year, gaining by more than 16.5%, a bit higher than the S&P 500’s return of 15.7%. However, in the first quarter 2013, many famous investors including Joel Greenblatt, Steven Cohen and Paul Tudor Jones have either sold out or reduced their stakes in the company. Barron’s, in contrast, is more »
Investing in companies that pay reliable dividends can add a level of stability and predictability to a portfolio. It's a known fact that dividend-paying companies tend to hold up better than non-dividend payers during bear markets. In addition, investing in companies with a combination of exceptional earnings and dividend growth can provide very attractive, market-beating returns over the long term.
In order for a company to pay more »
Yacktman Asset Management LP is an Austin, Texas-based hedge fund management firm founded by Donald A. Yacktman. The firm manages over $17 billion in equities and invests using the fundamental value approach. Last quarter, the firm significantly increased its position in Microsoft, Coca-Cola and C.H. Robinson.
Shares Bought Last Quarter
Shares Held March 31, 2013
6 more »
Recently, Morningstar's Senior Stock Analyst Greggory Warren shared a list of 10 high-conviction stocks that have been bought by “ultimate stock pickers.” In that list of 10 stocks, I noticed two stocks which are considered to have wide moats -- Microsoft (NASDAQ: MSFT) and C.H. Robinson Worldwide (NASDAQ: CHRW).
Microsoft – decent yield and huge R&D spending
Microsoft still seems to be cheap at its current levels. It is more »
As overseas commerce and shipping expand, third party logistics providers have and will most likely continue to benefit largely. Firms like C.H. Robinson (NASDAQ: CHRW), Expeditors International of Washington (NASDAQ: EXPD) and Landstar System (NASDAQ: LSTR) seem particularly poised to grow on the back of their particular asset-free (or asset-light) business models, which allow them to reduce risks associated with diminished demand and cyclicality, while their scale increases leverage more »
The chief aim of substantially all business ventures is to invest cash in a manner that returns a larger amount of cash than could be earned in another endeavor of equal or lesser risk. For investors, return is measured by compound annual gains or losses of a particular portfolio. For businesses, the return is often measured by return on invested capital (ROIC), or some variant thereof.
ROIC is crucial to more »
The five big buys of Yacktman Asset Management as of March 31, 2013, were Microsoft (NASDAQ: MSFT), Sysco (NYSE: SYY), Coca-Cola (NYSE: KO), Johnson & Johnson (NYSE: JNJ), and C.H. Robinson Worldwide (NASDAQ: CHRW). Headed by the investment guru, Donald Yacktman, the hedge fund has a total of $19.52 billion of assets under management based on data compiled by whalewisdom.com.
I have briefly analyzed all of these from more »
Warren Buffett coined the phrase “moat” to define the strength of a company's competitive advantage. Most companies have little to no moat, or protection from their competition. Others have very wide moats, meaning that they have structural advantages that keeps competition at bay.
When one thinks of a company with a wide moat, they usually think of very large businesses with scale, like Coca-Cola or Wal-Mart. Both have a more »
Expeditors International of Washington (NASDAQ: EXPD), with a market cap of $7.65 billion, is engaged in the business of providing global logistics services, offering a seamless international network supporting the movement and strategic positioning of goods. Expeditors compete with other logistics providers, such as C.H. Robinson Worldwide (NASDAQ: CHRW), with a market cap of $9.56 billion, and Pacer International (NASDAQ: PACR), with a market cap of $202 more »
Warren Buffett has been one of the most prominent investors in companies with wide moats. He often referred to his investment targets as companies that possess “long-term competitive advantage in a stable industry” or, in other words, “an enduring ‘moat’ that protects excellent returns on invested capital.” Wide moats and excellent ROIC, likely the best measure of economic profitability, generally go hand-in-hand. What’s more, over longer time horizons, wide more »
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