J.B. Hunt Transport Services, Inc. (JBHT - Free Report) announced that it will acquire the brokerage operations of an affiliate of Texas-based rail company BNSF Railway Co. The financial terms of the deal were not disclosed.
J.B. Hunt will pay cash to acquire the assets of BNSF Logistics LLC, which provides third-party logistics services (3PL), including truckload, flatbed, temperature-controlled, drayage, expedited and less-than-truckload. The deal, aimed at improving intermodal service, is expected to be completed by the end of 2023.
Per John Roberts, CEO of J.B. Hunt, “This acquisition is another step forward in our mission to create the most efficient transportation network in North America”.
J.B. Hunt has been a customer of BNSF Railway’s truck-rail intermodal services for several years, providing containers and truck trailers that move on BNSF’s rail network. The companies stepped up their commercial relationship last year.
BNSF Logistics provides value-added 3PL services for BNSF Railway. Upon closing the transaction, BNSF Railway and J.B. Hunt will enter into a long-term service agreement whereby J.B. Hunt will continue to provide services for BNSF Railway. Post-closure, the brokerage operations of BNSF Logistics will operate under J.B. Hunt’s Integrated Capacity Solutions segment.
Per Katie Farmer, president and CEO of BNSF Railway “This agreement with J.B. Hunt reflects our companies’ shared commitment to provide industry-leading intermodal service to our customers.”
Zacks Rank
J.B. Hunt currently carries Zacks Rank #4 (Sell).
Key Picks
Some better-ranked stocks for investors interested in the Zacks Transportation sector are GATX Corporation (GATX - Free Report) and Triton International Limited .
GATX, which presently carries a Zacks Rank #2 (Buy), has strengthened its railcar leasing operations. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
For third-quarter and full-year 2023, GATX’s earnings are expected to register 36.6% and 14.3% growth, respectively, on a year-over-year basis.
Triton, which currently carries a Zacks Rank #2, is benefiting from its consistent efforts to reward shareholders through dividends and share repurchases.
Triton has an impressive liquidity position. Its current ratio (a measure of liquidity) was 3.83 at the end of second-quarter 2023. A current ratio of more than 1 often indicates that the company will be easily paying off its short-term obligations.
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J.B. Hunt Transport Services, Inc. (JBHT - Free Report) announced that it will acquire the brokerage operations of an affiliate of Texas-based rail company BNSF Railway Co. The financial terms of the deal were not disclosed.
J.B. Hunt will pay cash to acquire the assets of BNSF Logistics LLC, which provides third-party logistics services (3PL), including truckload, flatbed, temperature-controlled, drayage, expedited and less-than-truckload. The deal, aimed at improving intermodal service, is expected to be completed by the end of 2023.
Per John Roberts, CEO of J.B. Hunt, “This acquisition is another step forward in our mission to create the most efficient transportation network in North America”.
J.B. Hunt has been a customer of BNSF Railway’s truck-rail intermodal services for several years, providing containers and truck trailers that move on BNSF’s rail network. The companies stepped up their commercial relationship last year.
BNSF Logistics provides value-added 3PL services for BNSF Railway. Upon closing the transaction, BNSF Railway and J.B. Hunt will enter into a long-term service agreement whereby J.B. Hunt will continue to provide services for BNSF Railway. Post-closure, the brokerage operations of BNSF Logistics will operate under J.B. Hunt’s Integrated Capacity Solutions segment.
Per Katie Farmer, president and CEO of BNSF Railway “This agreement with J.B. Hunt reflects our companies’ shared commitment to provide industry-leading intermodal service to our customers.”
Zacks Rank
J.B. Hunt currently carries Zacks Rank #4 (Sell).
Key Picks
Some better-ranked stocks for investors interested in the Zacks Transportation sector are GATX Corporation (GATX - Free Report) and Triton International Limited .
GATX, which presently carries a Zacks Rank #2 (Buy), has strengthened its railcar leasing operations. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
For third-quarter and full-year 2023, GATX’s earnings are expected to register 36.6% and 14.3% growth, respectively, on a year-over-year basis.
Triton, which currently carries a Zacks Rank #2, is benefiting from its consistent efforts to reward shareholders through dividends and share repurchases.
Triton has an impressive liquidity position. Its current ratio (a measure of liquidity) was 3.83 at the end of second-quarter 2023. A current ratio of more than 1 often indicates that the company will be easily paying off its short-term obligations.
Zacks Names #1 Semiconductor Stock
It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.
With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.
See This Stock Now for Free >>
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