What Happened?

Shares of logistics and freight forwarding company Expeditors (NYSE: EXPD) fell 2.8% in the afternoon session after investors reacted to an 'underweight' rating from Barclays and digested ongoing concerns about the company's weak financial performance. 

The logistics firm grappled with significant challenges, as sales declined by 5.5% annually over the last two years. Earnings per share also fell during the same period, a trend that worried investors who see stock prices follow long-term earnings. Adding to the pressure, shrinking returns on capital suggested that increasing competition was eating into the company's profitability. The 'underweight' rating from Barclays analysts reinforced this bearish outlook for the stock. This negative view came even as the firm faced a tough market, with a tariff-linked trade downturn keeping ocean shipping rates down.

The shares closed the day at $120.13, down 3.2% from previous close.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Expeditors? Access our full analysis report here, it’s free.

What Is The Market Telling Us

Expeditors’s shares are not very volatile and have only had 4 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.

Expeditors is up 9.2% since the beginning of the year, and at $120.15 per share, it is trading close to its 52-week high of $131.40 from September 2024. Investors who bought $1,000 worth of Expeditors’s shares 5 years ago would now be looking at an investment worth $1,360.

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