We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
J.B. Hunt Declines 32% in a Year: What's Hurting the Stock?
Read MoreHide Full Article
Shares of J.B. Hunt Transport Services (JBHT - Free Report) have declined 31.6% in a year’s time due to multiple headwinds.
One-Year Price Performance
Factors Weighing on the Stock
High operating expenses have been limiting bottom-line growth for quite some time. Notably, factors like high wages for drivers are causing increase in operating expenses. In first-quarter 2019, the metric registered an 8% improvement.
Also, driver shortages have been hurting operations of the company for quite some time. High capital expenditures are too pushing up costs. Additionally, acquisition-related costs are limiting bottom-line growth.
The successive deterioration in the operating ratio (operating expenses as a percentage of revenues) during the fourth quarter of 2018 and the first quarter of 2019 is an added concern. Operating income (on a reported basis) also decreased in both the quarters due to costs associated with rail purchase transportation.
Furthermore, J.B. Huntis highly leveraged company. This is evident from the fact that the ratio of its long-term debt-to-equity (expressed as a percentage) is currently 58.3, which compares unfavorably to the figure of 16.8 for its industry. For current-quarter earnings, the Zacks Consensus Estimate has been revised 7% downward over the past 60 days, highlighting the negative sentiment surrounding the stock.
These apart, the company’s Momentum Score of C and a Zacks Rank #4 (Sell) reflect its short-term unattractiveness.
Fly Leasing and GATX flaunt an encouraging earnings history, having outperformed the Zacks Consensus Estimate in each of the trailing four quarters. Meanwhile, shares of SkyWest have surged more than 33% so far this year.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.
This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.
Image: Bigstock
J.B. Hunt Declines 32% in a Year: What's Hurting the Stock?
Shares of J.B. Hunt Transport Services (JBHT - Free Report) have declined 31.6% in a year’s time due to multiple headwinds.
One-Year Price Performance
Factors Weighing on the Stock
High operating expenses have been limiting bottom-line growth for quite some time. Notably, factors like high wages for drivers are causing increase in operating expenses. In first-quarter 2019, the metric registered an 8% improvement.
Also, driver shortages have been hurting operations of the company for quite some time. High capital expenditures are too pushing up costs. Additionally, acquisition-related costs are limiting bottom-line growth.
The successive deterioration in the operating ratio (operating expenses as a percentage of revenues) during the fourth quarter of 2018 and the first quarter of 2019 is an added concern. Operating income (on a reported basis) also decreased in both the quarters due to costs associated with rail purchase transportation.
Furthermore, J.B. Huntis highly leveraged company. This is evident from the fact that the ratio of its long-term debt-to-equity (expressed as a percentage) is currently 58.3, which compares unfavorably to the figure of 16.8 for its industry. For current-quarter earnings, the Zacks Consensus Estimate has been revised 7% downward over the past 60 days, highlighting the negative sentiment surrounding the stock.
These apart, the company’s Momentum Score of C and a Zacks Rank #4 (Sell) reflect its short-term unattractiveness.
Stocks to Consider
Investors interested in the broader Transportation sector may consider Fly Leasing , GATX Corporation (GATX - Free Report) and SkyWest (SKYW - Free Report) . While Fly Leasing sports a Zacks Rank #1 (Strong Buy), GATX and SkyWest carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Fly Leasing and GATX flaunt an encouraging earnings history, having outperformed the Zacks Consensus Estimate in each of the trailing four quarters. Meanwhile, shares of SkyWest have surged more than 33% so far this year.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.
This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.
See their latest picks free >>