J.B. Hunt Transport (JBHT) Stock Up 4.09% Yesterday: Here's Why
Shares of J.B. Hunt Transport Services JBHT performed well on the bourse yesterday, rising 4.09% from Tuesday’s closing price. JBHT shares ended Sep 13’s trading session at $189.35 per share following the uptick.
Let’s delve deep to unearth the reasons behind the stock price appreciation.
At Morgan Stanley 11th Annual Laguna Conference, J.B. Hunt Transport’s management sounded optimistic on the freight environment, which has been lackluster so far this year. Highlighting the weak freight demand, Cass Freight shipments Index declined 2.2% month on monthin July. This measure has deteriorated month on month in five of the seven months reported so far this year, which confirms the overall declining trend.
However, management of this trucking company is reportedly of the view that the market is coming out of a freight recession. Freight volumes are likely to be up slightly in the back half of the year, per many customers of JBHT. JBHT’s president, Shelley Simpson stated at the conference that its customers have mostly completed an inventory destocking.
Highlighting significant growth potential, the company aims to grow its container fleet to 150,000 units over the next two to four years, in a bid to improve intermodal capacity. In another positive update, JBHT expects cost pressures to ease.
Along with positively impacting the company’s share price, the upbeat commentary from management boosted the entire trucking sector. Shares of fellow trucking companies like Covenant Logistics CVLG gained on Sep 13, following JBHT’s positive update.
Zacks Rank & Key Picks
J.B. Hunt currently carries a Zacks Rank #4 (Sell).
Investors interested in the Zacks Transportation sector may consider stocks like Covenant Logistics and Air Canada ACDVF. CVLG and ACDVF currently carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
CVLG offers a portfolio of transportation and logistics services, including asset-based expedited, dedicated and irregular route truckload capacity, besides asset-light warehousing, transportation management and freight brokerage capability.
CVLG’s cost-control efforts are commendable. The stock has witnessed the Zacks Consensus Estimate for 2023 earnings being revised 7.44% upward over the past 60 days.
Air Canada is being aided by an uptick in passenger traffic. Recently, management announced plans to launch a new year-round route between Montreal and Madrid. The service will be commencing in May of the following year, as part of its expanded international summer 2024 flying schedule to cater to increased demand.
The Zacks Consensus Estimate for current-year earnings has jumped 57.1% over the past 60 days. ACDVF has outshined the Zacks Consensus Estimate in two of the past four quarters (missing the mark in the other two).
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J.B. Hunt Transport Services, Inc. (JBHT) : Free Stock Analysis Report
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