Jim Cramer on C.H. Robinson: “This One’s Still a Terrific Stock”

C.H. Robinson Worldwide, Inc. (NASDAQ:CHRW) is one of the stocks Jim Cramer shed light on recently. Cramer highlighted the stock’s performance over the last year, as he said:

Finally, we got encouraging signs about the freight market this week. You know, we’ve been worried about a freight recession here. This time, C.H. Robinson Worldwide, the logistics company, popped more than 5% yesterday in response to a very solid quarter. I’ve been looking for confirmation that a freight market recovery, not a recession, might be in the cards as the transports have rallied nicely in recent months. That confirmation has proved elusive.

Earlier this month, J.B. Hunt, the big trucking company, reported a good quarter, mostly driven by cost cuts, management sounding far from confident about freight demand. How about C.H. Robinson? Again, I was hoping for some constructive commentary on the freight business, but instead, we got more of what we heard from J.B. Hunt. This company delivered a nicer earnings beat, but its sales declined 6.5% year-over-year, with weak pricing and volume for ocean services as well as weak pricing for truckload services.

Now, some bullish analysts tried to seize on a couple of positive aspects of the report, like higher volume in the company’s truckload business. I think that’s a stretch. Really, it seems like C.H. Robinson’s benefiting from market share gains and self-help initiatives to put up good numbers in spite of a still very weak freight business. The performance of the stock has been really great over the last year. Of course, in some ways, that makes these numbers all the more impressive. C.H. Robinson has rallied 130% from its post-Liberation Day lows, and management’s doing a terrific job playing the cards they’ve been dealt. I was just hoping they’d get a better hand this quarter, and that didn’t happen. But this one’s still a terrific stock.

Photo by Adam Nowakowski on Unsplash

C.H. Robinson Worldwide, Inc. (NASDAQ:CHRW) provides freight transportation and logistics services, including truckload, air, and ocean shipping. Moreover, it handles customs brokerage, warehousing, and the marketing of fresh produce.

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Disclosure: None. This article is originally published at Insider Monkey.