Zacks Industry Outlook Highlights Expeditors International of Washington, C.H. Robinson Worldwide and Matson

For Immediate ReleaseChicago, IL – July 17, 2025 – Today, Zacks Equity Research discusses Expeditors International of Washington EXPD, C.H. Robinson Worldwide CHRW and Matson MATX.Industry: Transportation ServicesLink: https://www.zacks.com/commentary/2585526/3-transport-service-stocks-showing-promise-despite-industry-headwindsThe Zacks Transportation-Services industry faces challenges, ranging from dull freight rates, high inflation, and lingering supply-chain disruptions. The tariff-related uncertainty and geopolitical woes represent further challenges for this key industry.Yet, beneath the gloom lies a glimmer of long-term promise. Driven by solid fundamentals, companies like Expeditors International of Washington, C.H. Robinson Worldwide and Matson are highly likely to weather near-term challenges and seize opportunities as the cycle turns.About the IndustryThe companies belonging to the Zacks Transportation-Services industry offer transporters logistics, leasing and maintenance services. Some industry players focus on the business of global logistics management, including international freight forwarding. Third-party logistics entities provide innovative supply-chain solutions. They also focus on services like product sourcing, warehousing and freight shipping.These companies have expertise in trucking, air and ocean transportation. Some players in this industry deliver domestic and international express delivery services. The well-being of the companies in this industrial cohort is directly proportional to the health of the economy. An uptick in manufactured and retail goods, favorable pricing and improvement in global economic conditions bode well for industry participants.4 Trends Shaping the Future of the Transportation-Services IndustrySupply-Chain Disruptions & Weak Freight Rates: Although economic activities picked up from the pandemic gloom, lingering supply-chain disruptions continue to dent stocks in the industry. Below-par freight rates are also hurting the industry's prospects. Highlighting the weak freight demand, the Cass Freight Shipments Index declined 2.4% year over year in June. This measure has deteriorated year over year each of the past 11 months, which confirms the overall declining trend.Focus on Cost-Cuts to Drive Bottom Line: Despite signs of cooling inflation, we are by no means out of the woods. We note that the industry has been experiencing significant levels of inflation, including higher prices for labor and freight. The industry players are focusing on cost-cutting measures and making efforts to improve productivity and efficiency, to mitigate high expenses and a weaker-than-expected demand scenario.Strong Financial Returns for Shareholders: With economic activities gaining pace from the pandemic lows, more and more companies are allocating their increasing cash pile by way of dividends and buybacks to pacify long-suffering shareholders. This underlines their financial strength and business confidence. Among the Transportation – Services industry players, Matson's board of directors approved a dividend hike of 5.9%, thereby raising its quarterly cash dividend to 36 cents per share ($1.44 annualized) from 34 cents ($1.36 annualized).Tariff Turmoil — A Key Headwind: The current administration is focused on protectionism that restricts international trade to help domestic industries. The U.S. administration's tariff policies are reshaping the transportation service industry by increasing costs, disrupting supply chains, and influencing consumer behavior. The tariff turmoil is hurting global trade. Tariff-induced economic uncertainties and trade tensions may create uncertainty for investors interested in the industry.Zacks Industry Rank Indicates Dull ProspectsThe Zacks Transportation - Services industry is a 21-stock group within the broader Zacks Transportation sector. The industry currently carries a Zacks Industry Rank #179, which places it in the bottom 27% of 245 Zacks industries.The group's Zacks Industry Rank, the average of the Zacks Rank of all member stocks, indicates dismal near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.The industry's position in the bottom 50% of the Zacks-ranked industries is a result of a negative earnings outlook for the constituent companies in aggregate. Looking at the aggregate earnings estimate revisions, it appears that analysts are gradually losing confidence in this group's earnings growth potential. The industry's earnings estimate for 2025 has decreased 31.2% since August 2024.Before we present a few stocks from the industry that you may want to buy, let's take a look at the industry's recent stock market performance and the valuation picture.Industry Lags S&P 500 But Outperforms SectorThe Zacks Transportation-Services industry has underperformed the Zacks S&P 500 composite while outperforming the broader Transportation sector in a year.The industry has declined 12.8% over this period, underperforming the S&P 500's appreciation of 12.2% and outperforming the broader sector's slide of 27.9%.Industry's Current ValuationBased on the forward 12-month price-to-sales, a commonly used multiple for valuing Transportation-services stocks, the industry is currently trading at 1.32X compared with the S&P 500's 5.26X. The value is also lower than the sector's trailing 12-month P/S of 1.45X.Over the past five years, the industry has traded as high as 2.93X, as low as 1.23X, and at the median of 1.86X.3 Transport-Services Stocks to Monitor NowExpeditors, a leading third-party logistics provider, is based in Seattle, WA. EXPD currently has a Zacks Rank #2 (Buy). EXPD beat the Zacks Consensus Estimate in each of the last four quarters by an average of 13.3%.While weak volumes (concerning air-freight tonnage and ocean containers) stemming from soft demand and declining rates are hurting EXPD's performance, efforts to cut costs in the face of demand weakness are driving the bottom line.You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks hereC.H. Robinson, currently carrying a Zacks Rank #3 (Hold), operates as an asset-light logistics player. Efforts to control costs bode well for this freight broker. Measures to reward CHRW's shareholders bode well. CHRW's liquidity position is encouraging, too.CHRW has surpassed the Zacks Consensus Estimate for earnings in each of the past four quarters. The average beat is 14.5%.Matson: Headquartered in Honolulu, HI, Matson provides ocean transportation and logistics services. We are impressed by the cost-management actions taken by the company to drive its bottom line. Its efforts to reward its shareholders are also commendable.MATX carries a Zacks Rank #3 currently. MATX beat the Zacks Consensus Estimate in three of the last four quarters, missing the mark once. The average beat is 9.7%.Research Chief Names "Single Best Pick to Double"From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpJoin us on Facebook: https://www.facebook.com/ZacksInvestmentResearch/Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.Media ContactZacks Investment Research800-767-3771 ext. 9339support@zacks.comhttps://www.zacks.comPast performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance  for information about the performance numbers displayed in this press release.Zacks' Research Chief Picks Stock Most Likely to "At Least Double"Our experts have revealed their Top 5 recommendations with money-doubling potential – and Director of Research Sheraz Mian believes one is superior to the others. Of course, all our picks aren’t winners but this one could far surpass earlier recommendations like Hims & Hers Health, which shot up +209%.See Our Top Stock to Double (Plus 4 Runners Up) >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report C.H. Robinson Worldwide, Inc. (CHRW): Free Stock Analysis Report Expeditors International of Washington, Inc. (EXPD): Free Stock Analysis Report Matson, Inc. (MATX): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks