How Expeditors Moves the Freight

Expeditors International of Washington (EXPD) sounds like a lobbying group. Far from it: The Seattle outfit is a global provider of air and ocean freight-forwarding services to importers, exporters, and distributors of such goods as electronic gear and machine parts. "Expeditors charges less than FedEx (FDX) or UPS (UPS), so the earnings and cash flow remain strong despite the weak economy," says Scott Armiger of Christiana Bank & Trust, which owns shares. Expeditors doesn't own planes, trucks, or ships, so it is cost-efficient and unburdened by huge capital expense. It buys space in bulk from airlines and ocean freight ships and then resells it to clients.

Jim Corridore of Standard & Poor's sees the stock, now at 31.49, at 43 in a year. Expeditors' diversified revenue base, geographical reach, and methods of shipping allow it to outperform its peers, says Corridore.