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Here's Why You Should Give J.B. Hunt (JBHT) Stock a Miss Now
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J.B. Hunt Transport Services, Inc. (JBHT - Free Report) is currently mired in multiple headwinds, which, we believe, have made it an unimpressive investment option.
Let’s delve deeper.
Southward Earnings Estimate Revision: The Zacks Consensus Estimate for third-quarter 2024 earnings has been revised 17.4% downward over the past 90 days. For 2024, the consensus mark for earnings has moved 12% south in the same time frame. The bearish alterations in estimate revisions underscore a notable decline in brokers' confidence in the stock.
Weak Zacks Rank and Style Score: J.B. Hunt currently carries a Zacks Rank #5 (Strong Sell). The company’s current Value Score of D shows its unattractiveness.
Unimpressive Price Performance: Shares of JBHT have lost 13.2% over the past year compared with the industry’s decline of 3.1%.
Image Source: Zacks Investment Research
Earnings Expectations: Downbeat earnings expectations cast a shadow over a company’s prospects. For third-quarter 2024, JBHT’s earnings are expected to decline 18.33% year over year. For 2024, JBHT’s earnings are expected to decline 18.22% year over year.
Weak Earnings Surprise History: JBHT has a disappointing earnings surprise history. The company’s earnings lagged the Zacks Consensus Estimate in each of the last four quarters, delivering an average miss of 12.77%.
Other Headwinds: J.B. Hunt continues to grapple with lower revenues across the majority of its business segments, mainly due to a combination of lower volume and customer rates. Higher net interest expense (owing to higher interest rates and debt issuance cost) is likely to mar J.B. Hunt’s bottom line. The company’s weak cash position is also worrisome.
CHRW has an impressive earnings surprise history. The company's earnings outpaced the Zacks Consensus Estimate in three of the trailing four quarters (missed the mark in the remaining quarter), delivering an average surprise of 7.33%.
CHRW has an expected earnings growth rate of 22.42% for 2024. The Zacks Consensus Estimate for CHRW 2024 earnings has been revised 11.3% upward over the past 90 days. Shares of CHRW have gained 14.3% so far this year.
WAB Lease has an impressive earnings surprise history. The company's earnings outpaced the Zacks Consensus Estimate in three of the trailing four quarters (missed the mark in the remaining quarter), delivering an average surprise of 11.83%.
The Zacks Consensus Estimate for WAB’s 2024 earnings has been revised 3.3% upward over the past 90 days. WAB has an expected earnings growth rate of 25.34% for 2024. Shares of WAB have gained 23.5% so far this year.
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Here's Why You Should Give J.B. Hunt (JBHT) Stock a Miss Now
J.B. Hunt Transport Services, Inc. (JBHT - Free Report) is currently mired in multiple headwinds, which, we believe, have made it an unimpressive investment option.
Let’s delve deeper.
Southward Earnings Estimate Revision: The Zacks Consensus Estimate for third-quarter 2024 earnings has been revised 17.4% downward over the past 90 days. For 2024, the consensus mark for earnings has moved 12% south in the same time frame. The bearish alterations in estimate revisions underscore a notable decline in brokers' confidence in the stock.
Weak Zacks Rank and Style Score: J.B. Hunt currently carries a Zacks Rank #5 (Strong Sell). The company’s current Value Score of D shows its unattractiveness.
Unimpressive Price Performance: Shares of JBHT have lost 13.2% over the past year compared with the industry’s decline of 3.1%.
Image Source: Zacks Investment Research
Earnings Expectations: Downbeat earnings expectations cast a shadow over a company’s prospects. For third-quarter 2024, JBHT’s earnings are expected to decline 18.33% year over year. For 2024, JBHT’s earnings are expected to decline 18.22% year over year.
Weak Earnings Surprise History: JBHT has a disappointing earnings surprise history. The company’s earnings lagged the Zacks Consensus Estimate in each of the last four quarters, delivering an average miss of 12.77%.
Other Headwinds: J.B. Hunt continues to grapple with lower revenues across the majority of its business segments, mainly due to a combination of lower volume and customer rates. Higher net interest expense (owing to higher interest rates and debt issuance cost) is likely to mar J.B. Hunt’s bottom line. The company’s weak cash position is also worrisome.
Stocks to Consider
A couple of better-rankedstocks from the Zacks Transportation sector are C.H. Robinson Worldwide (CHRW - Free Report) ) and Wabtec Corporation (WAB - Free Report) . Each stock presently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
CHRW has an impressive earnings surprise history. The company's earnings outpaced the Zacks Consensus Estimate in three of the trailing four quarters (missed the mark in the remaining quarter), delivering an average surprise of 7.33%.
CHRW has an expected earnings growth rate of 22.42% for 2024. The Zacks Consensus Estimate for CHRW 2024 earnings has been revised 11.3% upward over the past 90 days. Shares of CHRW have gained 14.3% so far this year.
WAB Lease has an impressive earnings surprise history. The company's earnings outpaced the Zacks Consensus Estimate in three of the trailing four quarters (missed the mark in the remaining quarter), delivering an average surprise of 11.83%.
The Zacks Consensus Estimate for WAB’s 2024 earnings has been revised 3.3% upward over the past 90 days. WAB has an expected earnings growth rate of 25.34% for 2024. Shares of WAB have gained 23.5% so far this year.