Back to top

Aggressive Growth

This page is temporarily not available.  Please check later as it should be available shortly. If you have any questions, please email customer support at support@zacks.com or call 800-767-3771 ext.  9339.

Hub Group, Inc. (HUBG - Snapshot Report) may have missed its latest quarterly EPS number, but that has not stopped analysts from raising estimates.

This Zacks #1 Rank (Strong Buy) is showing great year-over-year growth and that should continue through organically and through acquisition.

Company Description

Hub Group is a freight transportation management company offering intermodal, truck brokerage and logistic services. The company has over 30 offices throughout North America.

Solid Quarter

While Hub Group did miss by a penny in the latest earnings report on Apr 19, the overall results were solid. Analysts were raising expectations just ahead of the report, so the bar was set fairly high.

The company said that revenue was up 16% last quarter, some of that was due to higher fuel charges and pricing, but mostly due to an increase in volume which rose 13% for the intermodal segment.

Net income came in at $10.5 million, which was up 22% and breaks down to $0.28 per share. That was a penny below expectations, but analysts were still bullish, raising estimates and investors were buying up the stock.

Outlook Improving

Services offered by companies like Hub Group are pinned to the strength of the economy. And right now, people are growing more and more optimistic and more and more goods are being shipped.

Only a handful of analysts have given revised estimates since the earnings release, but all of their forecasts are higher. Currently, the Zacks Consensus Estimate it at $1.60 for this year, a 38% growth rate, and $2.08 next year, a 30% growth rate. Look for both of those levels to keep moving higher as more estimates come in over the next couple of weeks.

New Acquisition

Hub Group has been growing organically, but also just announced a new acquisition on Apr 4. The company bought Exel Transportation for $83 million. Last year Exel posted $717 million in sales.

The Chart

Take a look at just how sharply the earnings projections have been growing year over year for HUBG. Each colored line below represents a full-year's consensus estimate. Additionally, I expect to see that most recent lines continue to increase throughout the year, given the bullish results HUBG has shown thus far.

That is a picture perfect earnings chart for long-term growth.

Hub Group, Inc.   - ticker HUBG>

 
<P ALIGN=

Bill Wilton is the Aggressive Growth Stock Strategist for Zacks.com. He is also the Editor in charge of the Zacks Small Cap Trader service

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

Learn more

Start for as little as $4.50 per trade.

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
LAKE SHORE G LSG 0.77 +6.05%
SKECHERS USA SKX 38.53 +4.50%
QUESTCOR PHA QCOR 80.07 +2.47%
VIPSHOP HOLD VIPS 156.35 +1.82%
ENLINK MIDST ENLC 36.29 +1.60%