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Based in Lowell, Arkansas, J.B. Hunt Transport Services, Inc. (JBHT) is a leading provider of supply chain solutions. Valued at a market capitalization of $19.2 billion, the company is renowned for its innovative transportation and logistics strategies, J.B. Hunt delivers a wide array of services, including intermodal, dedicated, truckload, and final mile delivery.
Shares of JBHT have significantly underperformed the broader market over the past year. The stock has soared 5.9% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 31.8%. In 2024, the stock is down 4.7%, while the SPX has gained 25.8% on a YTD basis.
Narrowing the focus, JBHT has also lagged behind the Industrial Select Sector SPDR Fund (XLI). The exchange-traded fund has gained 35.4% over the past year and 25.6% on a YTD basis.
On Oct. 15, JBHT issued its Q3 earnings report, and its shares jumped by 3.2% in the following trading session. It reported a profit of $1.49 per share, surpassing Wall Street's expectation of $1.42 per share. The company posted revenue of $3.07 billion, also exceeding analysts' forecasts, which had expected $3.04 billion.
For the current fiscal year, ending in December, analysts expect JBHT’s EPS to decline 18.2% to $5.70 on a diluted basis. The company's earnings surprise history is mixed. It missed the consensus estimate in three of the last four quarters, while beating on another occasion.
Among the 21 analysts covering JBHT stock, the consensus rating is a “Moderate Buy.” That’s based on 13 “Strong Buy” ratings, one “Moderate Buy,” and seven “Holds.”
This consensus is less bullish than two months ago, when 12 analysts suggested a “Strong Buy” for the stock.
On Nov. 12, Citigroup Inc. (C) analyst Ariel Rosa raised the price target on J.B. Hunt Transport to $227 from $204, while maintaining a “Buy” rating. The firm noted improved sentiment for North American transport stocks despite mixed Q3 earnings and cautious Q4 outlooks. However, Citi expressed concern that investors may be chasing stocks that have already seen significant gains, requiring companies to outperform estimates to justify current valuations.
The mean price target is $191.40, representing a marginal premium compared to JBHT’s current price levels. The Street-high price target of $220 suggests an upside potential of 15.6%.
