With American exports hitting a record high, many investors are looking at firms that sell abroad -- such as Boeing (NYSE: BA), Caterpillar (NYSE: CAT) and Dow Chemical (NYSE: DOW). All are great companies and among the leading exporters in the country.
Not as well known, but just as well-placed to profit from increasing exports, is C.H. Robinson Worldwide (NASDAQ: CHRW).
Based in Minnesota, C.H. Robinson Worldwide offers global transportation services. It is one of the largest holdings of Mairs & Power Growth, an excellent mutual fund that has a fondness for companies in Minnesota. Others include Hormel (NYSE: HRL) and 3M (NYSE: MMM). That is fine company for a medium cap like C.H. Robinson Worldwide to be associated with.
For 2013, C.H. Robinson Worldwide is off by nearly seven percent. That drop can be attributed to its most recent earnings disappointing Wall Street. In addition, it was just downgraded by Deutsche Bank. It is likely that investors are selling the stock to take the tax loss at year end, too.
But there is much like about the long term potential of C.H. Robinson Worldwide.
Sales are up more than 15 percent on a quarterly basis. The price-to-sales ratio is just 0.70. That means that every dollar of sales is going at a 30 percent discount in the stock price. The return-on-equity, one of Warren Buffett's favorite indicators, is over 40 percent, which is very bullish. There is also an above-average dividend of 2.42 percent.
The U.S. economy is getting stronger. Exports should continue to increase, especially with the economic reforms coming from China and growth in the rest of Asia. C.H. Robinson Worldwide should reward its shareholders with an increasing total return as exports from the United States rise.
Posted-In: China exports transportation transportation servicesLong Ideas Emerging Markets Dividends Commodities Economics Markets Trading Ideas
(c) 2013 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Most Popular Rumor: Google to Announce Set-top Box Early in 2014 UPDATE: Sysco and US Foods Agree to Merge in $8.2B Agreement Five Star Stock Watch: eBay, Inc. How to Invest Like Warren Buffett Intel Paves Way For $99 Tablets Market Wrap For December 9: Investors Digest Further Clues Hinting at An Upcoming Taper Related Articles () Cameron Board Approves $750M Increase In Share Buyback Program RadioShack Completes New Five-Year Financing Totaling $835M HomeAway Announces 5.5M Share Offering Benzinga's M&A Chatter for Tuesday December 10, 2013 Is World Wrestling Entertainment About to Get Pinned? Market Wrap For December 10: Fed Meeting One Week Away Around the Web, We're Loving... Lightspeed Trading Presents: Thunder and Tubleweeds: Trading Techniques for the New Market Enviroment Pope Francis Rips 'Trickle-Down' Economics Come See How the Pro's Trade in this Exclusive Webinar
No comments:
Post a Comment