"CHRW faces a challenging road ahead after the end of what we see as a once-in-a-decade combination of margin expansion and truckload (TL) market share gains," the firm wrote in an analyst note.
The Eden Prairie, MN-based company provides freight transportation services and logistics solutions to a variety of companies.
C.H. Robinson's margins are expected to decrease based on research that shows "stock performance twelve months after a peak was negative twice as often as it was positive," the firm said.
Additionally, the company's stock "valuation and forecasted EPS growth have a strong positive correlation suggesting the current multiple is too high for the PEG ratio to remain within historical norms," JPMorgan noted.
The firm expects 2016 earnings of $3.76 per share.
Shares of C.H. Robinson are down 3.63% to $71.73 in mid-afternoon trading.
Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:
We rate C H ROBINSON WORLDWIDE INC as a Buy with a ratings score of A-. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its solid stock price performance, growth in earnings per share, largely solid financial position with reasonable debt levels by most measures, good cash flow from operations and notable return on equity. We feel its strengths outweigh the fact that the company shows low profit margins.