Truist Sees Improving Freight Trends Supporting Expeditors' (EXPD) Outlook

Expeditors International of Washington, Inc. (NYSE:EXPD) is included among the Dividend Growth Stocks: 25 Aristocrats.

In the near term, broker margins could feel some strain as spot rates move higher. Peak season volumes appear to be tracking normal seasonal patterns, and the sales mix may lean more toward airfreight and parcel, which could support margins in those areas.

Management continues to approach the market with caution. Ocean rates could fall if Red Sea trade routes normalize, and geopolitical and labor risks remain in the background. Even so, the company stays focused on expanding its footprint and tightening operations. With a wide mix of revenue streams, Expeditors is positioned to grow over time, though recessions, global trade disruptions, and sudden shocks remain real risks. The company has increased its dividend for 31 consecutive years.

Expeditors International of Washington, Inc. (NYSE:EXPD) provides global logistics services that include air and ocean freight forwarding, customs brokerage, vendor consolidation, cargo insurance, time-sensitive delivery, order management, warehousing, distribution, and other tailored logistics solutions.

Short-term headwinds are still there. Over the long run, volumes have trended higher, and that pattern has supported revenue growth for many years. The same dynamic is expected to play out again.

While we acknowledge the potential of EXPD as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.