CH Robinson Worldwide Inc. (CHRW): Today's Featured Transportation Laggard

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

CH Robinson Worldwide ( CHRW) pushed the Transportation industry lower today making it today's featured Transportation laggard. The industry as a whole closed the day down 0.8%. By the end of trading, CH Robinson Worldwide fell 88 cents (-1.4%) to $59.85 on average volume. Throughout the day, 1.6 million shares of CH Robinson Worldwide exchanged hands as compared to its average daily volume of 1.3 million shares. The stock ranged in price between $59.63-$60.88 after having opened the day at $60.75 as compared to the previous trading day's close of $60.72. Other companies within the Transportation industry that declined today were: Overseas Shipholding Group ( OSG), down 62.1%, TOP Ships ( TOPS), down 8.2%, StealthGas ( GASS), down 6.8%, and DS Torm ( TRMD), down 6.3%.
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C.H. Robinson Worldwide, Inc., a third-party logistics company, provides freight transportation services and logistics solutions to companies in various industries worldwide. CH Robinson Worldwide has a market cap of $9.91 billion and is part of the services sector. The company has a P/E ratio of 22.6, equal to the average transportation industry P/E ratio and above the S&P 500 P/E ratio of 17.7. Shares are down 13% year to date as of the close of trading on Friday. Currently there are six analysts that rate CH Robinson Worldwide a buy, no analysts rate it a sell, and 18 rate it a hold.

TheStreet Ratings rates CH Robinson Worldwide as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, growth in earnings per share, good cash flow from operations and increase in net income. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

On the positive front, Newlead Holdings ( NEWL), up 11.4%, FreeSeas ( FREE), up 8.1%, Knightsbridge Tankers ( VLCCF), up 6.2%, and Euroseas ( ESEA), up 5.3%, were all gainers within the transportation industry with Norfolk Southern Corporation ( NSC) being today's featured transportation industry leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the transportation industry could consider iShares Dow Jones Transportation ( IYT) while those bearish on the transportation industry could consider ProShares UltraShort Industrials ( SIJ).

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