Latest news with #JBHuntTransportServices
CNBC
22-05-2025
- Business
- CNBC
Transport stock charts aren't saying the economy is fine
Markets stabilized on Thursday after the dual sell-off in stocks and bonds, but a key corner of the equity market is blinking a caution light on the economy. The Dow Jones Transportation Average is headed for a losing week and has fallen back below its pre-April 2 Liberation Day levels. JB Hunt Transport Services and C.H. Robinson Worldwide have both dropped for four straight sessions. The performance of transportation stocks is often seen as a harbinger of the U.S. economy as they serve as an intermediary between producers and end customers. The chart of J.B. Hunt in particular is worrisome, as the stock is down more than 18% year to date. JBHT YTD mountain Shares of JB Hunt are trailing the broader market significantly in 2025. The struggles of transport stocks are not necessarily predictive of an economic downturn, but serve as a reminder that the outlook is still murky. Michael Reynolds, vice president of investment strategy at Glenmede, told CNBC that the odds of a recession have fallen in recent weeks due to the deescalation of tariffs on China and cautioned against reading too much into short-term moves over the past few days. However, his firm's outlook doesn't call for an economic boom, either, even as it sees upside ahead for stocks. "Are we going to get our trend 2-to-2.5% growth in 2025? We don't think so. But there is a sort of muddle-through scenario here that is quite a bit more constructive, I think, for risk assets," Reynolds said. Meager economic growth could be good enough to support corporate earnings and help put a floor under the equity market. However, simply avoiding a recession isn't great news for investors if it takes a large amount of deficit spending by the government to prop up growth, and pushes up bond yields at the same time. "You have a debt problem, there's three ways to get out: you inflate out, you grow out, or you default," John Luke Tyner, head of fixed income at Aptus Capital Advisors, told CNBC. "And we know that default's not an option. Significant austerity measures aren't an option because it doesn't get elected in D.C. ...so some combination of growth and inflation seems likely to persist to get out of this problem, and that's going to pressure long-term yields."
Forbes
16-04-2025
- Business
- Forbes
What's Next For JBHT Stock?
UKRAINE - 2021/05/08: In this photo illustration, the J.B. Hunt logo of the American transportation ... More and logistics company seen on a smartphone and on a pc screen. (Photo Illustration by Pavlo Gonchar/SOPA Images/LightRocket via Getty Images) 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. Invest with Trefis Market Beating Portfolios | Rules-Based Wealth
Forbes
11-04-2025
- Business
- Forbes
Will JB Hunt's Earnings Drive Its Stock Up Or Down?
JB Hunt Transport Services is set to announce its earnings on Tuesday, April 15, 2025. For the upcoming quarter, consensus estimates forecast earnings of $1.15 per share on revenue of $2.91 billion. This compares to earnings of $1.22 per share on revenue of $2.94 billion in the same quarter last year. JBHT currently holds a market capitalization of $14 billion. Over the past twelve months, the company reported $12 billion in revenue, along with $831 million in operating profits and $571 million in net income. Trefis Although JBHT stock rebounded significantly after President Trump declared a 90-day pause on reciprocal tariffs, the stock remains down 17% year-to-date. This drop is largely driven by the broader market sell-off, exacerbated by wider macroeconomic concerns. President Donald Trump's sweeping tariffs on imports from more than 100 countries have intensified fears about potential economic downturns and reduced consumer spending. As a result, the logistics sector faces a tough environment marked by weakening demand and heightened economic uncertainty. While the outcome will depend heavily on how the results compare with market expectations, historical performance trends can offer valuable insights for event-driven traders. There are two key strategies to consider: either analyze historical odds and establish a position ahead of earnings, or examine post-earnings return patterns and trade based on observed correlations in short- and medium-term returns. See earnings reaction history of all stocks Some key observations on one-day (1D) post-earnings returns: Further data on 5-Day (5D) and 21-Day (21D) post-earnings returns is summarized in the table below. An alternative approach with potentially lower risk (provided correlations are meaningful) involves analyzing the relationship between short- and medium-term returns. Identifying the pair with the strongest correlation allows traders to act accordingly. For example, if 1D and 5D returns show a strong correlation, a trader might go "long" for 5 days following a positive 1D return. The following data shows correlations over the past 5 years and 3 years. '1D_5D' refers to the correlation between 1-day and 5-day post-earnings returns. Learn more about Trefis RV strategy that has outperformed its all-cap stocks benchmark(combination of all 3, the S&P 500, S&P mid-cap, and Russell 2000), to produce strong returns for investors. Separately, if you want upside with a smoother ride than an individual stock like Johnson & Johnson, consider the High Quality portfolio, which has outperformed the S&P, and clocked >91% returns since inception. Invest with Trefis Market Beating Portfolios | Rules-Based Wealth
