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Here's Why You Should Retain J.B. Hunt (JBHT) in Portfolio Now
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J.B. Hunt Transport Services, Inc. (JBHT - Free Report) currently benefits from strong performances of the Dedicated Contract Services (DCS) and Truckload segments.
JBHT has an expected long-term earnings per share (three to five years) growth rate of 15%. Further, earnings are anticipated to register growth of 30% and 6.2% in 2022 and 2023, respectively.
Factors That Augur Well
Strong performances of the DCS and Truckload segments are driving J.B. Hunt’s top line, which climbed 26.3% and 33.3% year over year in 2021 and during the first quarter of 2022. Revenues from the DCS segment rose 17.4% year over year in 2021 on fleet productivity improvement and an increase in average revenue-producing trucks, among other factors. The same climbed 28% year over year in the first quarter of 2022. Increased load count and revenue per load are supporting growth in the Truckload segment. Revenues from the same climbed 72% year over year in 2021. Truckload revenues soared 77% year over year in first-quarter 2022. Such strong performances are expected to continue, thanks to robust freight market conditions.
We are impressed by JBHT’s efforts to reward its shareholders through dividend payments and share repurchases. In January 2022, the board hiked its dividend by 33% to 40 cents per share (annually: $1.60). J.B. Hunt raised its dividend twice last year. JBHT is also active on the buyback front, having resumed the same in the fourth quarter of 2020 after a temporary pause amid the coronavirus concerns.
During 2021, J.B. Hunt repurchased shares worth $150 million. During the first quarter of 2022, JJBHT repurchased around 382,000 shares for approximately $75 million. The trucking company had approximately $276 million remaining under its share repurchase authorization at the end of the first quarter of 2022.
J.B. Hunt's cash and cash equivalents stood at $144.53 million at the end of the first quarter of 2022, much lower than the current debt of $351.21 million. This implies that JBHT does not have enough cash to meet its current debt obligations.
Ryder has a trailing-four quarter surprise of 48.2%, on average, with its earnings having surpassed the Zacks Consensus Estimate in all the last four quarters. R is benefiting from improving economic and freight conditions in the United States.
Revenues in all segments grew (on higher rental revenues, new business and favorable pricing) in first-quarter 2022. R currently carries a Zacks Rank #2 (Buy).
The expected long-term (three-to-five years) earnings per share (EPS) growth rate for C.H. Robinson is pegged at 9%. Improving freight market conditions are aiding CHRW.
In first-quarter 2022, the top line improved 41.8% owing to favorable truckload pricing for customers and handsome profits in ocean freight. CHRW currently carries a Zacks Rank of 2.
GATX has a trailing-four quarter surprise of 40.1%, on average, with its earnings having surpassed the Zacks Consensus Estimate in all the last four quarters. The gradual improvement in the North American railcar leasing market boosts GATX.
Driven by the upsides, the stock has risen 1.6% in the past year. GATX currently has a Zacks Rank of 2.
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Here's Why You Should Retain J.B. Hunt (JBHT) in Portfolio Now
J.B. Hunt Transport Services, Inc. (JBHT - Free Report) currently benefits from strong performances of the Dedicated Contract Services (DCS) and Truckload segments.
JBHT has an expected long-term earnings per share (three to five years) growth rate of 15%. Further, earnings are anticipated to register growth of 30% and 6.2% in 2022 and 2023, respectively.
Factors That Augur Well
Strong performances of the DCS and Truckload segments are driving J.B. Hunt’s top line, which climbed 26.3% and 33.3% year over year in 2021 and during the first quarter of 2022. Revenues from the DCS segment rose 17.4% year over year in 2021 on fleet productivity improvement and an increase in average revenue-producing trucks, among other factors. The same climbed 28% year over year in the first quarter of 2022. Increased load count and revenue per load are supporting growth in the Truckload segment. Revenues from the same climbed 72% year over year in 2021. Truckload revenues soared 77% year over year in first-quarter 2022. Such strong performances are expected to continue, thanks to robust freight market conditions.
We are impressed by JBHT’s efforts to reward its shareholders through dividend payments and share repurchases. In January 2022, the board hiked its dividend by 33% to 40 cents per share (annually: $1.60). J.B. Hunt raised its dividend twice last year. JBHT is also active on the buyback front, having resumed the same in the fourth quarter of 2020 after a temporary pause amid the coronavirus concerns.
During 2021, J.B. Hunt repurchased shares worth $150 million. During the first quarter of 2022, JJBHT repurchased around 382,000 shares for approximately $75 million. The trucking company had approximately $276 million remaining under its share repurchase authorization at the end of the first quarter of 2022.
J.B. Hunt's cash and cash equivalents stood at $144.53 million at the end of the first quarter of 2022, much lower than the current debt of $351.21 million. This implies that JBHT does not have enough cash to meet its current debt obligations.
Zacks Rank and Stocks to Consider
J.B. Hunt currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Some better-ranked stocks in the broader Zacks Transportation sector are Ryder System, Inc. (R - Free Report) , C.H. Robinson Worldwide, Inc. (CHRW - Free Report) and GATX Corporation (GATX - Free Report) .
Ryder has a trailing-four quarter surprise of 48.2%, on average, with its earnings having surpassed the Zacks Consensus Estimate in all the last four quarters. R is benefiting from improving economic and freight conditions in the United States.
Revenues in all segments grew (on higher rental revenues, new business and favorable pricing) in first-quarter 2022. R currently carries a Zacks Rank #2 (Buy).
The expected long-term (three-to-five years) earnings per share (EPS) growth rate for C.H. Robinson is pegged at 9%. Improving freight market conditions are aiding CHRW.
In first-quarter 2022, the top line improved 41.8% owing to favorable truckload pricing for customers and handsome profits in ocean freight. CHRW currently carries a Zacks Rank of 2.
GATX has a trailing-four quarter surprise of 40.1%, on average, with its earnings having surpassed the Zacks Consensus Estimate in all the last four quarters. The gradual improvement in the North American railcar leasing market boosts GATX.
Driven by the upsides, the stock has risen 1.6% in the past year. GATX currently has a Zacks Rank of 2.