J.B. Hunt’s Stock Struggles Amid Revenue Declines: An Analysis

Lowell, Arizona-based J.B. Hunt Transport Services, Inc. (JBHT) is a prominent player in the freight and logistics sector. With a market capitalization of $15 billion, the company operates in various segments including intermodal, dedicated contract services, integrated capacity solutions, final mile services, and truckload operations.

Falling within the “large-cap stocks” category, J.B. Hunt’s valuation reflects its substantial size and influence in the logistics industry, given its market cap exceeds $10 billion.

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Despite its significant market presence, JBHT has faced a turbulent period, experiencing a 24.5% drop from its 52-week high of $200.40 on November 11, 2024. Additionally, the stock has decreased nearly 12% over the past three months, significantly trailing the ProShares Supply Chain Logistics ETF (SUPL), which saw a smaller dip of 2.9% over the same timeframe.

Examining a longer timeline, J.B. Hunt’s performance remains concerning. Over six months, JBHT has declined 11.7%, and over the past year, it plummeted 21.9%. In contrast, SUPL has seen a decline of 11.3% over the last six months and 7.3% over the past year.

To further illustrate the downturn, JBHT has mostly traded below its 50-day moving average since mid-December 2024 and has fluctuated below its 200-day moving average since early February.

J.B. Hunt’s stock fell 7.4% during the trading session following the disappointing Q4 results presented on January 16. The company continues to experience weakened demand, which has impacted revenue streams. While JBHT’s total revenues of $2.8 billion slightly beat analysts’ estimates, they still reflect a 4.8% decline from the same quarter last year. Furthermore, earnings of $1.53 per share fell short of expectations, missing by 5.6%, raising concerns among investors.

Compared to its competitor Landstar System, Inc. (LSTR), which has faced an 18.2% decline over the same six-month period, J.B. Hunt’s performance has been somewhat better, yet it also lags behind LSTR’s decrease of 18.2% over the past year.

Despite these challenges, analysts maintain a cautiously optimistic view of J.B. Hunt’s long-term prospects. Out of the 23 analysts monitoring JBHT, the consensus rating is categorized as a “Moderate Buy.” Their mean price target of $184.64 indicates a potential upside of approximately 22% from present price levels.

On the date of publication, Aditya Sarawgi did not hold (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are for informational purposes only. For additional details, please view the Barchart Disclosure Policy here.

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The views and opinions expressed herein are those of the author and do not necessarily reflect the views of Nasdaq, Inc.