Here's Why You Should Retain Expeditors (EXPD) Stock Now

Core Viewpoint - Expeditors International of Washington (EXPD) is focusing on shareholder-friendly initiatives and maintaining strong liquidity, but is facing challenges due to declining volumes and high capital expenditures [1]. Group 1: Shareholder Initiatives - The company announced a 3% increase in its semi-annual cash dividend in May 2023, continuing a trend from 2022 [2]. - Expeditors is actively engaging in share buybacks to enhance shareholder value [2]. Group 2: Cost Management and Financial Health - To address soft demand, the company is cutting costs, with a significant reduction in compensation expenses year-over-year in 2023 [3]. - Expeditors reported a current ratio of 2.02 at the end of 2023, indicating strong liquidity [3]. - The acquisition of Fleet Logistics' Digital Platform has improved Expeditors' online less-than-truckload shipping platform, Koho [3]. Group 3: Market Challenges - The company is experiencing declining airfreight and ocean container volumes due to weakened demand and falling rates [4]. - High capital expenditures are a concern, with 2022 capex at $86.8 million, significantly higher than $36.2 million in 2021, and 2023 capex at $39.3 million [5]. Group 4: Stock Performance - Over the past six months, EXPD shares have decreased by 5.3%, compared to a 4.7% decline in its industry [7].