J.B. Hunt Gains 13.6% in 6 Months: What Should Investors Do Now?

Zacks12-07

J.B. Hunt Transport Services, Inc.’s JBHT have had a good time on the bourses of late, improving in double-digits over the past six months. Despite reporting encouraging price performance, JBHT ...

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Despite reporting encouraging price performance, JBHT ...</p>\n\n<a href=\"https://finance.yahoo.com/news/j-b-hunt-gains-13-175200416.html\">Source Link</a>\n\n</div>\n","source":"yahoofinance","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>J.B. 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Hunt Gains 13.6% in 6 Months: What Should Investors Do Now?\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-12-07 01:52 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/j-b-hunt-gains-13-175200416.html><strong>Zacks</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>J.B. Hunt Transport Services, Inc.’s JBHT have had a good time on the bourses of late, improving in double-digits over the past six months. Despite reporting encouraging price performance, JBHT ...</p>\n\n<a href=\"https://finance.yahoo.com/news/j-b-hunt-gains-13-175200416.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"JBT","symbol_name":"约翰宾技术","start_time":0,"source_url":"https://finance.yahoo.com/news/j-b-hunt-gains-13-175200416.html","article_id":"2489626842","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/JGjZuX_Ml6pcWJhdGnTmig--~B/aD00MDA7dz02MzU7YXBwaWQ9eXRhY2h5b24-/https://media.zenfs.com/en/zacks.com/efd4a2f2d36a17af419752e6e777b1c4"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2489626842","pubTimestamp":1733507520,"columns":[],"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"J.B. Hunt Transport Services, Inc.’s JBHT have had a good time on the bourses of late, improving in double-digits over the past six months. Despite reporting encouraging price performance, JBHT underperformed itsindustry in the said time frame. JBHT’s price performance compares unfavorably with that of other industry player like Knight-Swift Transportation Holdings Inc.  but favorably with Landstar System, Inc.  in the same timeframe.Let’s delve deeper to find out what should investors do now with JBHT stock.Higher net interest expense is likely to mar J.B. Hunt’s bottom line. JBHT continues to incur higher interest expenses owing to higher interest rates and debt issuance costs. Net interest expense for 2022 and 2023 increased 9.7% and 16.2% year over year, respectively. Net interest expense for the first nine months of","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"JBT":"约翰宾技术","BK4161":"工业机械","FMS":"费森尤斯医疗","BK4520":"美国基建股","LU0029874061.USD":"TEMPLETON GLOBAL SMALLER COMPANIES \"A\" YDIS INC","BK4585":"ETF&股票定投概念","BK4196":"保健护理服务","BK4211":"区域性银行","LU2362541273.HKD":"WELLINGTON NEXT GENERATION GLOBAL EQUITY \"A\" (HKD) ACC","LU2362541513.USD":"WELLINGTON NEXT GENERATION GLOBAL EQUITY \"A\" (USD) ACC","LSTR":"莱帝运输","ISBC":"投资者银行","JBHT":"JB Hunt运输服务","IE00B19Z6F94.USD":"Legg Mason Royce - US Smaller Companies A Acc USD","LU0128526141.USD":"TEMPLETON GLOBAL SMALLER COMPANIES \"A\" ACC","JBI":"Janus International Group","KNX":"Knight Transportation Inc","BK4588":"碎股","LU0385154629.USD":"贝莱德营养科学基金A2","BK4022":"陆运","BK4086":"建筑产品","LU0471298777.SGD":"Blackrock Nutrition A2 SGD-H","BK4232":"货物陆运","LU1169590202.USD":"ALLSPRING (LUX)  U.S. SELECT EQUITY \"I\" (USD) ACC","LU2362540622.SGD":"WELLINGTON NEXT GENERATION GLOBAL EQUITY \"A\" (SGDHDG) ACC","LU1169589451.USD":"ALLSPRING (LUX)  U.S. SELECT EQUITY \"A\" (USD) ACC"},"translate_title":"J.B.亨特6个月内上涨13.6%：投资者现在应该做什么？","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"LSTR":1,"KNX":1,"JBT":1,"JBI":1,"ISBC":1,"FMS":1,"JBHT":0.9},"content_text":"J.B. Hunt Transport Services, Inc.’s JBHT have had a good time on the bourses of late, improving in double-digits over the past six months. Despite reporting encouraging price performance, JBHT underperformed its industry in the said time frame. JBHT’s price performance compares unfavorably with that of other industry player like Knight-Swift Transportation Holdings Inc. (KNX) but favorably with Landstar System, Inc. (LSTR) in the same timeframe.\nSix-Month Price Comparison\n Image Source: Zacks Investment Research\nLet’s delve deeper to find out what should investors do now with JBHT stock.\nFactors Working in Favor of JBHT Stock\nWe are impressed by the company’s efforts to reward its shareholders through dividend payments and share repurchases. With the quarterly dividend of 43 cents per share (annualized $1.72 cents per share), JBHT's dividend yield is currently pegged at 0.95%. The move reflects JBHT’s intention to utilize free cash to enhance its shareholders’ returns.\nThe company is also active on the buyback front, having resumed the same in the fourth quarter of 2020 after a temporary pause amid coronavirus concerns. In the third quarter of 2024, JBHT purchased almost 1,200,000 shares for $200 million. As of Sept. 30, 2024, JBHT had approximately $967 million remaining under its share repurchase authorization. Consistent shareholder-friendly initiatives instill investor confidence and positively impact J.B. Hunt's bottom line.\nDeclining operating expenses due to lower fuel costs, purchased transportation costs, and salaries, wages and benefits expenses have the potential to boost J.B. Hunt's bottom line. During 2023, operating expenses fell 12.2% year over year. During the first nine months of 2024, operating expenses declined 4.8% year over year.\nSegmental Weakness & Higher Interest Expense: Major Woes\nJ.B. Hunt's top line continues to grapple with weakness across most of its business segments. JBHT reported third-quarter 2024 revenues of $3.07 billion, which surpassed the Zacks Consensus Estimate of $3.04 billion but fell 3% year over year. The downfall was owing to a 5% and 6% decrease in gross revenue per load in Intermodal (JBI) and Truckload (JBT), respectively, a decline in load volume of 10% and 6% in Integrated Capacity Solutions (ICS) and Dedicated Contract Services (DCS), respectively, and 6% fewer stops in Final Mile Services (FMS). These were partially offset by JBI load growth of 5%, which included growth in both the transcontinental and eastern networks and a 3% increase in revenue per load in ICS. Total operating revenue, excluding fuel surcharge revenue, decreased less than 1% from the year-ago reported quarter.\nHigher net interest expense is likely to mar J.B. Hunt’s bottom line. JBHT continues to incur higher interest expenses owing to higher interest rates and debt issuance costs. Net interest expense for 2022 and 2023 increased 9.7% and 16.2% year over year, respectively. Net interest expense for the first nine months of 2024 increased 34.8% year over year due to higher effective interest rates and consolidated debt balance, partially offset by higher interest income.\nJ.B. Hunt’s weak cash position is worrisome. JBHT's cash and cash equivalents were $120 million at the end of the third quarter of 2024, much lower than the long-term debt of $1.03 billion. This implies that the company does not have sufficient cash to meet its debt obligations.\nLong-Term Debt to Capitalization\n Image Source: Zacks Investment Research\nGiven these headwinds surrounding the stock, earnings estimates have been southbound, as shown below.\n Image Source: Zacks Investment Research\nTo Conclude\nIt is understood that decline in operating expenses and consistent shareholder-friendly initiatives bode well for J.B. Hunt’s bottom line. However, given the headwinds mentioned in the write-up, we do not advise buying this Zacks Rank #3 (Hold) stock at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. \nInstead, they should monitor the company’s developments closely for a more appropriate entry point. For those who already own the stock, it will be prudent to stay invested. The stock’s Zacks Rank supports our thesis.\nWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report\nJ.B. Hunt Transport Services, Inc. (JBHT) : Free Stock Analysis Report\nKnight-Swift Transportation Holdings Inc. (KNX) : Free Stock Analysis Report\nLandstar System, Inc. (LSTR) : Free Stock Analysis Report\nTo read this article on Zacks.com click here.\nZacks Investment Research","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"1","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.3","shortVersion":"4.29.3","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2489626842"}