Trucking giant J.B. Hunt Transport seems on the surface to be rolling right along. It boasts strong ratings and high double-digit profit and sales growth. And on Tuesday a key rating change marked what could be a turning point for its stock. The IBD Relative Strength Rating for J.B. Hunt stock improved to 72, up from 68.
A 72 RS Rating demonstrates that the Lowell, Ariz.-based trucking company's stock has performed in the top 28% of all stocks, regardless of industry. However, it's shy of the top ranks. The best-performing stocks typically have an 80 or higher RS Rating as they begin their biggest price moves. Clearly though, J.B. Hunt stock is moving in the right direction.
Looking For Winning Stocks? Try This Simple Routine
J.B. Hunt Stock's Other Rating Mostly Shine
Among its other fundamental ratings, J.B. Hunt stock has a strong 94 Composite Rating of a best-possible 99. The Composite is a combination of IBD's other five top ratings. It boasts a 95 EPS Rating, putting it in the top 5% of companies for profit growth. Its B SMR Rating, on an A-to-E scale with A tops, is another indicator of strength. One yellow flag — J.B. Hunt has a D- Accumulation/Distribution Rating, which means that institutional investors like mutual funds are selling more shares than buying. That's not too surprising given the ongoing bear market, but look for that rating to improve.
J.B. Hunt stock was up about 1% Tuesday afternoon. It's working on a consolidation with a 218.28 buy point. See if the stock can clear the breakout price in heavy volume.
Double-Digit Profit, Sales Growth Every Quarter
J.B. Hunt Transport posted 50% EPS growth in the latest quarterly report, to $2.42 per share. The prior three periods its EPS rose 59%, 58% and 67%. Sales last quarter climbed 32% to $3.84 billion. The long-haul trucker will hold a news conference on Oct. 18 to discuss its Q2 results.
Take Our Anonymous Survey And Tell Us What You Like (And Don't Like)
Ten Participants Will Win A $50 Amazon Gift Card.
J.B. Hunt stock earns the No. 11 rank among its peers in the Transportation-Truck industry group. PAM Transport and TFI International are among the group's highest-rated stocks.
When looking for the best stocks to buy and watch, investors can use relative price strength as an indicator of strength.
IBD's unique Relative Strength Rating tracks technical performance by showing how a stock's price action over the last 52 weeks measures up against that of the other stocks in our database.
Please follow James DeTar on Twitter @JimDeTar
