What's Next For JBHT Stock?
Following the release of its Q1 results, JB Hunt Transport Services stock traded lower on Wednesday, April 16th. Although the trucking company reported first-quarter revenue of $2.92 billion and earnings per share of $1.17—both slightly above analysts' estimates of $2.91 billion in sales and $1.15 EPS—these figures marked a year-over-year decline. Investors were concerned by management's remarks about tariff-related demand pressures and rising costs.
We believe JBHT stock, which is currently priced near $125, poses a risky investment. However, this elevated risk has contributed to its low valuation, potentially making it appealing to investors comfortable with volatility.
Our view is based on a comparison of JBHT's current valuation against its operating metrics over the years, along with a review of its financial health. Our analysis—spanning Growth, Profitability, Financial Stability, and Downturn Resilience—highlights operational and financial weaknesses, as detailed below.
In terms of sales or profit multiples, JBHT stock appears slightly undervalued relative to the broader market.
JB Hunt Transport Services' Revenues have declined in recent years.
JB Hunt Transport Services' margins are subpar relative to peers in the Trefis universe.
The company's balance sheet appears relatively weak.
JBHT has shown slightly better performance than the S&P 500 during select downturns. For a detailed analysis, check our dashboard How Low Can JB Hunt Transport Services Stock Go In A Market Crash? and our overview of market crashes.
Here's how JB Hunt Transport Services scores across our framework:
Although JBHT demonstrates underperformance across several metrics, its historical resilience and current low valuation—potentially reflecting near-term risks like tariffs—suggest a possible upside. In our view, this may present a buying opportunity for long-term investors.
For those with lower risk tolerance, a hedged approach within a diversified portfolio, such as the Trefis Reinforced Value (RV) Portfolio, which has outperformed its all-cap stocks benchmark, might offer a smoother ride while still capturing potential upside. Why is that? The quarterly rebalanced mix of large-, mid- and small-cap RV Portfolio stocks provided a responsive way to make the most of upbeat market conditions while limiting losses when markets head south, as detailed in RV Portfolio performance metrics.
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