Since January 2025, C.H. Robinson Worldwide has been in a holding pattern, posting a small loss of 3% while floating around $98.71. The stock also fell short of the S&P 500’s 6.9% gain during that period.

Is there a buying opportunity in C.H. Robinson Worldwide, or does it present a risk to your portfolio? See what our analysts have to say in our full research report, it’s free.

Why Do We Think C.H. Robinson Worldwide Will Underperform?

We're sitting this one out for now. Here are three reasons why you should be careful with CHRW and a stock we'd rather own.

1. Long-Term Revenue Growth Disappoints

Examining a company’s long-term performance can provide clues about its quality. Any business can put up a good quarter or two, but many enduring ones grow for years. Over the last five years, C.H. Robinson Worldwide grew its sales at a sluggish 2.5% compounded annual growth rate. This was below our standards.

2. EPS Took a Dip Over the Last Two Years

While long-term earnings trends give us the big picture, we also track EPS over a shorter period because it can provide insight into an emerging theme or development for the business.

Sadly for C.H. Robinson Worldwide, its EPS and revenue declined by 13.7% and 12.1% annually over the last two years. We tend to steer our readers away from companies with falling revenue and EPS, where diminishing earnings could imply changing secular trends and preferences. If the tide turns unexpectedly, C.H. Robinson Worldwide’s low margin of safety could leave its stock price susceptible to large downswings.

3. New Investments Fail to Bear Fruit as ROIC Declines

A company’s ROIC, or return on invested capital, shows how much operating profit it makes compared to the money it has raised (debt and equity).

We like to invest in businesses with high returns, but the trend in a company’s ROIC is what often surprises the market and moves the stock price. Over the last few years, C.H. Robinson Worldwide’s ROIC has unfortunately decreased significantly. We like what management has done in the past, but its declining returns are perhaps a symptom of fewer profitable growth opportunities.

Final Judgment

We see the value of companies helping their customers, but in the case of C.H. Robinson Worldwide, we’re out. With its shares trailing the market in recent months, the stock trades at 20.3× forward P/E (or $98.71 per share). This valuation tells us it’s a bit of a market darling with a lot of good news priced in - you can find more timely opportunities elsewhere. We’d suggest looking at the Amazon and PayPal of Latin America.

Stocks We Would Buy Instead of C.H. Robinson Worldwide

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