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What Makes J.B. Hunt Transport Services (JBHT) an Attractive Investment?

Wedgewood Partners, an investment management company, released its “Focused SMID Cap Strategy” first quarter 2023 investor letter. A copy of the same can be downloaded here. In the first quarter, the fund returned 2.5% compared to a 3.4% return for the Russell 2500 Index. In addition, please check the fund’s top five holdings to know its best picks in 2023.

Wedgewood SMID Cap Strategy highlighted stocks like J.B. Hunt Transport Services, Inc. (NASDAQ:JBHT) in the first quarter 2023 investor letter. Headquartered in Lowell, Arkansas, J.B. Hunt Transport Services, Inc. (NASDAQ:JBHT) provides logistics solutions. On June 6, 2023, J.B. Hunt Transport Services, Inc. (NASDAQ:JBHT) stock closed at $171.55 per share. One-month return of J.B. Hunt Transport Services, Inc. (NASDAQ:JBHT) was -2.87%, and its shares gained 1.63% of their value over the last 52 weeks. J.B. Hunt Transport Services, Inc. (NASDAQ:JBHT) has a market capitalization of $17.781 billion.

Wedgewood SMID Cap Strategy made the following comment about J.B. Hunt Transport Services, Inc. (NASDAQ:JBHT) in its Q1 2023 investor letter:

"As we continue to familiarize our clients with our SMID portfolio’s holdings, we would like to discuss our significant exposure to the U.S. Transportation industry. We currently have three transportation holdings and have been substantially overweight the industry in comparison to the Russell 2500 index for several years. While these undoubtedly are cyclical business models, we see many long-term tailwinds for the domestic Transportation industry, which will provide attractive growth levels and will allow these companies to improve their returns on investment over time.

J.B. Hunt Transport Services, Inc. (NASDAQ:JBHT) is the country’s largest independent provider of intermodal transportation services, with smaller businesses in trucking and logistics. Intermodal transportation refers to freight deliveries that require the use of more than one “mode” of transportation, most often including some combination of ocean, railroad, and truck between source and destination. J.B. Hunt generally provides the rail portion of these intermodal loads.

J.B. Hunt benefited from the exacerbated shortage in Truckload capacity in both their intermodal business—where they could directly substitute railroad service for people who weren’t able to find TL capacity—and in their smaller, but rapidly growing Dedicated TL division, where the company takes over all or a portion of a shipping customer’s trucking fleet. While customers were paying significantly higher prices and still struggling to find any trucking capacity, they found it very attractive to contract for a dedicated, outsourced fleet with J.B. Hunt."

Largest Trucking Companies by Number of Trucks
Largest Trucking Companies by Number of Trucks


J.B. Hunt Transport Services, Inc. (NASDAQ:JBHT) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 33 hedge fund portfolios held J.B. Hunt Transport Services, Inc. (NASDAQ:JBHT) at the end of first quarter 2023 which was 30 in the previous quarter.

We discussed J.B. Hunt Transport Services, Inc. (NASDAQ:JBHT) in another article and shared the list of top women-owned companies in the US. In addition, please check out our hedge fund investor letters Q1 2023 page for more investor letters from hedge funds and other leading investors.


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Disclosure: None. This article is originally published at Insider Monkey.