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If You Invested $1000 in JB Hunt a Decade Ago, This is How Much It'd Be Worth Now
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How much a stock's price changes over time is a significant driver for most investors. Not only can price performance impact your portfolio, but it can help you compare investment results across sectors and industries as well.
Another thing that can drive investing is the fear of missing out, or FOMO. This particularly applies to tech giants and popular consumer-facing stocks.
What if you'd invested in JB Hunt (JBHT - Free Report) ten years ago? It may not have been easy to hold on to JBHT for all that time, but if you did, how much would your investment be worth today?
JB Hunt's Business In-Depth
With that in mind, let's take a look at JB Hunt's main business drivers.
J.B. Hunt Transport Services is a provider of a broad range of transportation services to a diverse group of customers through the United States, Canada and Mexico. The company is based in Lowell, AR. It was founded in 1961. J.B. Hunt's fiscal year coincides with the calendar year.
J.B. Hunt’s business operations are primarily organized in five distinct, but complementary business segments - JBI, Dedicated Contract Services (DCS), FMS, JBT and Integrated Capacity Solutions (ICS).
JBI (48% of 2020 revenues): The transportation service offerings of the JBI unit make use of arrangements with North American rail carriers for offering intermodal freight solutions for its customers. The segment is responsible for operating 98,689 pieces of company-owned trailing equipment systemwide. The fleet primarily includes 53-foot, high-cube containers. It is designed to take advantage of intermodal double-stack economics and superior ride quality. The segment owns and maintains its own chassis fleet, consisting of 83,259 units. The containers and chassis are designed so that only they may be paired together, thereby ensuring an operational competitive advantage. Additionally, the division manages a fleet of 5,166 company-owned tractors, 497 independent contractor trucks apart from 6,208 drivers.
DCS (23%): The segment was responsible for operating 9408 company-owned trucks, 498 customer-owned trucks and 5 independent contractor trucks at the end of 2019.
ICS (17%): ICS provides non-asset, asset-light, and transportation logistics solutions to customers through relationships with thousands of third-party carriers and integration with its owned equipment. By leveraging the J.B. Hunt brand, systems and network, ICS offers service to customers. It provides flatbed, refrigerated, expedited and less-than-truckload (LTL), as well as a variety of dry-van and intermodal solutions
FMS (7%): This segment offers final-mile delivery services to customers through a network of cross-dock and other delivery system network locations.
JBT (5%): The service offering in this segment is full-load, dry-van freight, making use of tractors operating on roads and highways.
Bottom Line
While anyone can invest, building a lucrative investment portfolio takes research, patience, and a little bit of risk. If you had invested in JB Hunt ten years ago, you're probably feeling pretty good about your investment today.
According to our calculations, a $1000 investment made in March 2012 would be worth $3,990.85, or a gain of 299.08%, as of March 17, 2022, and this return excludes dividends but includes price increases.
Compare this to the S&P 500's rally of 210.35% and gold's return of 11.60% over the same time frame.
Going forward, analysts are expecting more upside for JBHT.
J.B. Hunt is benefiting from strong performances of the Dedicated Contract Services (DCS), Truckload and Final Mile Services (FMS) segments. While the DCS unit is being aided by fleet productivity improvement and rise in average revenue producing trucks, the truckload unit is gaining from rise in load count and revenue per load. The FMS unit is seeing higher revenues on the back of multiple customer contracts implemented over the last year. J.B. Hunt’s efforts to reward its shareholders are impressive. Due to these positives, shares of the company have outperformed its industry in the past year. However, supply chain disruptions and labor shortages are concerns for the company. Escalating operating expenses pose a threat to J.B. Hunt’s bottom line. Also, J.B. Hunt's declining current ratio (a measure of liquidity) does not bode well.
Over the past four weeks, shares have rallied 14.17%, and there have been 9 higher earnings estimate revisions in the past two months for fiscal 2022 compared to none lower. The consensus estimate has moved up as well.
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If You Invested $1000 in JB Hunt a Decade Ago, This is How Much It'd Be Worth Now
How much a stock's price changes over time is a significant driver for most investors. Not only can price performance impact your portfolio, but it can help you compare investment results across sectors and industries as well.
Another thing that can drive investing is the fear of missing out, or FOMO. This particularly applies to tech giants and popular consumer-facing stocks.
What if you'd invested in JB Hunt (JBHT - Free Report) ten years ago? It may not have been easy to hold on to JBHT for all that time, but if you did, how much would your investment be worth today?
JB Hunt's Business In-Depth
With that in mind, let's take a look at JB Hunt's main business drivers.
J.B. Hunt Transport Services is a provider of a broad range of transportation services to a diverse group of customers through the United States, Canada and Mexico. The company is based in Lowell, AR. It was founded in 1961. J.B. Hunt's fiscal year coincides with the calendar year.
J.B. Hunt’s business operations are primarily organized in five distinct, but complementary business segments - JBI, Dedicated Contract Services (DCS), FMS, JBT and Integrated Capacity Solutions (ICS).
Bottom Line
While anyone can invest, building a lucrative investment portfolio takes research, patience, and a little bit of risk. If you had invested in JB Hunt ten years ago, you're probably feeling pretty good about your investment today.
According to our calculations, a $1000 investment made in March 2012 would be worth $3,990.85, or a gain of 299.08%, as of March 17, 2022, and this return excludes dividends but includes price increases.
Compare this to the S&P 500's rally of 210.35% and gold's return of 11.60% over the same time frame.
Going forward, analysts are expecting more upside for JBHT.
J.B. Hunt is benefiting from strong performances of the Dedicated Contract Services (DCS), Truckload and Final Mile Services (FMS) segments. While the DCS unit is being aided by fleet productivity improvement and rise in average revenue producing trucks, the truckload unit is gaining from rise in load count and revenue per load. The FMS unit is seeing higher revenues on the back of multiple customer contracts implemented over the last year. J.B. Hunt’s efforts to reward its shareholders are impressive. Due to these positives, shares of the company have outperformed its industry in the past year. However, supply chain disruptions and labor shortages are concerns for the company. Escalating operating expenses pose a threat to J.B. Hunt’s bottom line. Also, J.B. Hunt's declining current ratio (a measure of liquidity) does not bode well.
Over the past four weeks, shares have rallied 14.17%, and there have been 9 higher earnings estimate revisions in the past two months for fiscal 2022 compared to none lower. The consensus estimate has moved up as well.