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Is It Too Late To Consider Buying C.H. Robinson Worldwide, Inc. (NASDAQ:CHRW)?

Let's talk about the popular C.H. Robinson Worldwide, Inc. (NASDAQ:CHRW). The company's shares received a lot of attention from a substantial price movement on the NASDAQGS over the last few months, increasing to US$105 at one point, and dropping to the lows of US$90.01. 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 C.H. Robinson Worldwide's current trading price of US$98.21 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 C.H. Robinson Worldwide’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 C.H. Robinson Worldwide

Is C.H. Robinson Worldwide Still Cheap?

According to my valuation model, the stock is currently overvalued by about 26%, trading at US$98.21 compared to my intrinsic value of $77.67. This means that the opportunity to buy C.H. Robinson Worldwide at a good price has disappeared! In addition to this, it seems like C.H. Robinson Worldwide’s share price is quite stable, which could mean two things: firstly, it may take the share price a while to fall back down to an attractive buying range, and secondly, there may be less chances to buy low in the future once it reaches that value. This is because the stock is less volatile than the wider market given its low beta.

Can we expect growth from C.H. Robinson Worldwide?

earnings-and-revenue-growth
earnings-and-revenue-growth

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. Though in the case of C.H. Robinson Worldwide, it is expected to deliver a highly negative earnings growth in the next few years, which doesn’t help build up its investment thesis. It appears that risk of future uncertainty is high, at least in the near term.

What This Means For You

Are you a shareholder? If you believe CHRW is currently trading above its value, selling high and buying it back up again when its price falls towards its real value can be profitable. Given the risk from a negative growth outlook, this could be the right time to reduce your total portfolio risk. But before you make this decision, take a look at whether its fundamentals have changed.

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Are you a potential investor? If you’ve been keeping an eye on CHRW for a while, now may not be the best time to enter into the stock. Its price has risen beyond its true value, on top of a negative future outlook. However, there are also other important factors which we haven’t considered today, such as the financial strength of the company. Should the price fall in the future, will you be well-informed enough to buy?

If you want to dive deeper into C.H. Robinson Worldwide, you'd also look into what risks it is currently facing. Be aware that C.H. Robinson Worldwide is showing 3 warning signs in our investment analysis and 1 of those doesn't sit too well with us...

If you are no longer interested in C.H. Robinson Worldwide, 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.

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