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 up 1.4%. By the end of trading, CH Robinson Worldwide fell $4.30 (-7.0%) to $57.26 on heavy volume. Throughout the day, 4,587,688 shares of CH Robinson Worldwide exchanged hands as compared to its average daily volume of 1,520,200 shares. The stock ranged in price between $56.11-$57.90 after having opened the day at $56.65 as compared to the previous trading day's close of $61.56. Other companies within the Transportation industry that declined today were: FreeSeas ( FREE), down 11.7%, Skywest Incorporated ( SKYW), down 5.8%, XPO Logistics ( XPO), down 5.5% and Newlead Holdings ( NEWL), down 5.0%.
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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 $9.6 billion and is part of the services sector. The company has a P/E ratio of 16.4, below the S&P 500 P/E ratio of 17.7. Shares are down 4.5% year to date as of the close of trading on Tuesday. Currently there are 4 analysts that rate CH Robinson Worldwide a buy, 4 analysts rate it a sell, and 15 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, notable return on equity, good cash flow from operations and compelling growth in net income. We feel these strengths outweigh the fact that the company shows low profit margins.

On the positive front, DS Torm ( TRMD), down 152.0%, TOP Ships ( TOPS), down 10.0%, Star Bulk Carriers ( SBLK), down 8.3% and Knightsbridge Tankers ( VLCCF), down 7.0% , were all gainers within the transportation industry with Union Pacific ( UNP) 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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