|
|
 |
|
|
ONLINE FEATURES
Book Reviews
BW Video
Columnists
Interactive Gallery
Newsletters
Past Covers
Philanthropy
Podcasts
Special Reports
BLOGS
Auto Beat
Bangalore Tigers
Blogspotting
Brand New Day
Byte of the Apple
Deal Flow
Economics Unbound
Fine On Media
Hot Property
Investing Insights
New Tech in Asia
NussbaumOnDesign
Tech Beat
Working Parents
TECHNOLOGY
J.D. Power Ratings
Product Reviews
Tech Stats
Wildstrom: Tech Maven
AUTOS
Home Page
Auto Reviews
Classic Cars
Car Care & Safety
Hybrids
INNOVATION
& DESIGN Home Page Architecture Brand Equity Auto Design Game Room SMALLBIZ Smart Answers Success Stories Today's Tip INVESTING Investing: Europe Annual Reports BW 50 S&P Picks & Pans Stock Screeners Free S&P Stock Report SCOREBOARDS Hot Growth 100 Mutual Funds Info Tech 100 S&P 500 B-SCHOOLS Undergrad Programs MBA Blogs MBA Profiles MBA Rankings Who's Hiring Grads |  |
DECEMBER 19, 2005
Expeditors Climbs Fast  Expeditors International of Washington (EXPD
) sounds like a lobby group. But it's a money-making Seattle freight forwarder and customs broker whose stock rose from 50 in May to 71 on Dec. 7. Jonathan Ferrell of Top Flight Fund (TOPFX
), which started buying in October at 55, says: "Expeditors scores well in most measures we track -- such as upside earnings surprises and effective use of assets." Even though it's trading at 36 times 2006 estimated profits, the stock shows strong momentum, he notes. The earnings surprises have spurred analysts to hike estimates for 2006 and 2007. Expeditors -- which gets 40% of its revenues from the U.S., 28% from Asia, 18% from Europe, and 14% from the Middle East, Australia, and Latin America -- has posted solid margins, thanks to robust world trade. Air freight kicks in 39% of revenues, and ocean freight 26%. Expeditors buys space on planes and ships and resells it to clients. It also gets commissions for customs brokerage, insurance, and warehousing. Traffic on the Asia-to-North America route has been especially brisk, says Edward Wolfe of Bear Stearns (BSC
), which has done business with Expeditors. Wolfe, who rates the stock "outperform," expects Expeditors to earn $1.73 a share in 2005, $1.95 in 2006, and $2.34 in 2007.
Note: Unless otherwise noted, neither the sources cited in Inside Wall Street nor their firms hold positions in the stocks under discussion. Similarly, they have no investment banking or other financial relationships with them.  By Gene G. Marcial
BW MALL SPONSORED LINKS
Get BusinessWeek directly on your desktop with our RSS feeds.
Buy a link now! Add BusinessWeek news to your Web site with our headline feed. Click to buy an e-print or reprint of a BusinessWeek or BusinessWeek Online story or video. To subscribe online to BusinessWeek magazine, please click here. Learn more, go to the BusinessWeekOnline home page  | | 
|
 Copyright 2005, by The McGraw-Hill Companies Inc. All rights reserved.Terms of Use | Privacy Notice |
Printer-Friendly Version
