The Motley Fool picks C H Robinson

A lug nut up on the competition
I haven’t exactly been the biggest proponent of the trucking industry over the past couple of months, opting instead to throw my support in transportation behind the rails and global delivery companies like FedEx and UPS. But there are a few companies within the trucking sector that even I would never dare bet against. C.H. Robinson Worldwide (Nasdaq: CHRW ) is one such company.

C.H. Robinson, which relies on trucking for nearly 80% of its revenue, crumbled under the pressure of shrinking margins and rising fuel costs last week following its fourth-quarter earnings results. Despite the nominal miss ($0.67 profit vs. $0.68 estimate), I see this dip as a call to buy, not a reason to run in the other direction. Revenue still grew by double digits — the fifth consecutive year-over-year double-digit increase. Considering that fuel prices have been on a (more or less) steady incline since 2002 and C.H. Robinson’s stock price has matched that growth, I’m not too concerned about its response to rising fuel costs. I’d consider saddling up this trailer for your portfolio.

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