Expeditors International remains a Hold despite Q1 2026 gains due to ongoing ocean segment risks.

Expeditors International of Washington showed improved near-term results in Q1 2026, driven by strong customs brokerage and airfreight segments. However, the ocean freight segment continues to face structural overcapacity issues, posing medium-term risks. The stock trades at about 23 times next twelve months' price-to-earnings ratio, which seems high given the uncertain outlook. The analyst maintains a Hold rating until the company can offset ocean segment challenges and valuation becomes more reasonable.