J.B. Hunt Transport Services (JBHT) is a basic industry stock that has the double-digit growth projections I like to see. The trucking industry is vital to our economy and a transportation company that combines freight by both road and rail through its intermodal franchise is a plus.
During the past 2 1/2 months while the market as measured by the Value Line Index has been flat shares of J.B. Hunt are up 14%:
The company offers a full range of transportation solutions on both leased and company owned facilities and its operations cover the U.S., Canada and Mexico.
Factors to consider:
- 88% Barchart technical buy signal
- Trend Spotter buy signal
- Above its 20-, 50- and 100-day moving averages
- 4 new highs and up 3.32% in the last month
- Relative Strength Index 68.34%
- Barchart computes a technical support level at 57.90
- Recently traded at 60.29 with a 50-day moving average of 55.09
- 22 Wall Street brokerage firms assigned 30 analysts to make recommendations to their clients
- Revenue is projected to increase by 11.50% this year and another 10.50% next year
- Earnings are estimated to increase by 22.30% this year, an additional 16.30% next year and continue to increase annually at the rate of 19.47% for the next 5 years
- The 23.46 P/E ratio is not out of line in a 15.2 P/E market
- The dividend rate of 1% is about 20% of predicted earnings
- The company is increasing market share in both its rail and road transport segments
- The company has a B++ financial strength rating
- Wall Street analysts have made 7 strong buy, 7 buy, 15 hold and one under perform recommendations to their clients
- 202 individual investors on Motley Fool have voted the stock a 76% chance of beating the market
- Short interest is rapidly dropping from about 1.4 million shares in the middle of last month to around 800K shares recently.
Conclusion: J. B. Hunt Transport Services is in a basic industry and has analysts forecasts of double-digit increases in both revenue and earnings. It is increasing market share in most of its segments and can be acquired for a reasonable P/E. This looks to be a solid investment in a solid company and will benefit greatly as the economy recovers. As always monitor the moving averages and turtle channels to sense market weaknesses: