CH Robinson stock (NASDAQ
NDAQ
: CHRW), a freight transportation company, currently trades at $86 per share, 11% below the level seen in March 2021, and it has room for growth, in our view. CHRW stock was trading at around $101 in early June 2022, just before the Fed started increasing rates, and is now 15% below that level, compared to 13% gains for the S&P 500 during this period. The recent stock decline is partly attributed to price erosion and the soft freight market.
Interestingly, CHRW stock has had a Sharpe Ratio of 0.1 since early 2017, lower than 0.5 for the S&P 500 Index over the same period. This compares with the Sharpe of 1.2 for the Trefis Reinforced Value portfolio. Sharpe is a measure of return per unit of risk, and high-performance portfolios can provide the best of both worlds.
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