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JB Hunt (JBHT) Surges 9.6%: Is This an Indication of Further Gains?

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JB Hunt (JBHT - Free Report) shares soared 9.6% in the last trading session to close at $218.06. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 3.1% gain over the past four weeks.

The upside followed J.B. Hunt's deal with Warren Buffett's BNSF Railway. The deal is aimed at improving intermodal capacity to meet the buoyant demand scenario. J.B. Hunt aims to grow its intermodal fleet to 150,000 containers over the next three to five years. This reflects a 40% rise from its intermodal fleet size at 2021-end. The company has completed in excess of four million intermodal loads since 2020.

This trucking and logistics company is expected to post quarterly earnings of $1.87 per share in its upcoming report, which represents a year-over-year change of +36.5%. Revenues are expected to be $3.24 billion, up 23.7% from the year-ago quarter.

While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For JB Hunt, the consensus EPS estimate for the quarter has been revised marginally higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on JBHT going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

JB Hunt is part of the Zacks Transportation - Truck industry. Old Dominion Freight Line (ODFL - Free Report) , another stock in the same industry, closed the last trading session 4.7% higher at $323.40. ODFL has returned 3.8% in the past month.

Old Dominion's consensus EPS estimate for the upcoming report has changed +3% over the past month to $2.35. Compared to the company's year-ago EPS, this represents a change of +38.2%. Old Dominion currently boasts a Zacks Rank of #2 (Buy).


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