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Here's How Much a $1000 Investment in JB Hunt Made 10 Years Ago Would Be Worth Today
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How much a stock's price changes over time is important for most investors, since price performance can both impact your investment portfolio and help you compare investment results across sectors and industries.
The fear of missing out, or FOMO, also plays a factor in investing, especially with particular tech giants, as well as 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 (44.7% of 2021 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 104,973 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 85,649 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 5,612 company-owned tractors, 582 independent contractor trucks apart from 6,943 drivers.
DCS (21%): The segment was responsible for operating 11,139 company-owned trucks, 544 customer-owned trucks and 6 independent contractor trucks at the end of 2021.
ICS (20.9%): 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 (6.4%): The service offering in this segment is full-load, dry-van freight, making use of tractors operating on roads and highways.
Bottom Line
Anyone can invest, but building a successful investment portfolio takes a combination of a few things: research, patience, and a little bit of risk. So, if you had invested in JB Hunt a decade ago, you're probably feeling pretty good about your investment today.
A $1000 investment made in August 2012 would be worth $3,405.16, or a 240.52% gain, as of August 18, 2022, according to our calculations. Investors should note that this return excludes dividends but includes price increases.
Compare this to the S&P 500's rally of 201.38% and gold's return of 4.87% over the same time frame.
Analysts are forecasting more upside for JBHT too.
J.B. Hunt is benefiting from strong performances of the Dedicated Contract Services (DCS), Truckload and Final Mile Services (FMS) units. 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 past year. J.B. Hunt’s efforts to reward its shareholders are impressive. In January 2022, the company hiked its dividend by 33% to 40 cents per share. However, supply chain disruptions and labor shortages are concerns for the company. Rising operating expenses due to high fuel costs and driver wages pose a threat to J.B. Hunt’s bottom line. Also, J.B. Hunt’s weak cash position is worrisome.
The stock is up 8.98% over the past four weeks, and no earnings estimate has gone lower in the past two months, compared to 8 higher, for fiscal 2022. The consensus estimate has moved up as well.
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Here's How Much a $1000 Investment in JB Hunt Made 10 Years Ago Would Be Worth Today
How much a stock's price changes over time is important for most investors, since price performance can both impact your investment portfolio and help you compare investment results across sectors and industries.
The fear of missing out, or FOMO, also plays a factor in investing, especially with particular tech giants, as well as 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
Anyone can invest, but building a successful investment portfolio takes a combination of a few things: research, patience, and a little bit of risk. So, if you had invested in JB Hunt a decade ago, you're probably feeling pretty good about your investment today.
A $1000 investment made in August 2012 would be worth $3,405.16, or a 240.52% gain, as of August 18, 2022, according to our calculations. Investors should note that this return excludes dividends but includes price increases.
Compare this to the S&P 500's rally of 201.38% and gold's return of 4.87% over the same time frame.
Analysts are forecasting more upside for JBHT too.
J.B. Hunt is benefiting from strong performances of the Dedicated Contract Services (DCS), Truckload and Final Mile Services (FMS) units. 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 past year. J.B. Hunt’s efforts to reward its shareholders are impressive. In January 2022, the company hiked its dividend by 33% to 40 cents per share. However, supply chain disruptions and labor shortages are concerns for the company. Rising operating expenses due to high fuel costs and driver wages pose a threat to J.B. Hunt’s bottom line. Also, J.B. Hunt’s weak cash position is worrisome.
The stock is up 8.98% over the past four weeks, and no earnings estimate has gone lower in the past two months, compared to 8 higher, for fiscal 2022. The consensus estimate has moved up as well.