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J.B. Hunt (JBHT) Buys Mass Movement to Boost Final Mile Network

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J.B. Hunt Transport Services (JBHT - Free Report) acquired the assets of Mass Movement through its subsidiary J.B. Hunt Transport, Inc, to expand its rapidly-growing Final Mile network (delivery of goods at customers’ doorstep). The company funded the buyout using its available cash balance.

Generating annual revenues worth $29 million in 2019, Mass Movement is widely experienced (more than 20 years) in providing logistics, delivery, assembly and installation services for the commercial fitness industry.

This acquisition widens J.B. Hunt’s Final Mile Services (FMS) capabilities. Through the FMS segment, the company operates one of the largest, commingled cross-dock operations in the United States. The unit covers 117 locations and more than 3.4 million square feet of warehouse and facilities.

Notably, the Mass Movement buyout is the company’s fourth acquisition since 2017, aimed at expanding its Final Mile network. In 2019, the company acquired the assets of RDI Last Mile Co. and Cory 1st Choice Home Delivery to strengthen its presence in the fast-evolving market of delivering bulky goods straight to customers’ residences. In 2017, J.B. Hunt acquired Special Logistics Dedicated to fortify its pool distribution and fulfillment delivery operations. Notably, FMS revenues jumped 18.1% in the first nine months of 2020.

With the online shopping space growing by leaps and bounds, the last mile delivery market is projected to see a CAGR of more than 14% during the 2020-2024 forecast period. The surge in e-commerce demand during the current scenario is a further positive for the last mile delivery market.

Zacks Rank & Key Picks

J.B. Hunt currently carries a Zacks Rank #3 (Hold). Better-ranked stocks in the Zacks Transportation sector include Ryder System (R - Free Report) , GATX Corporation (GATX - Free Report)  and United Parcel Service (UPS - Free Report) , each presently carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Shares of Ryder, GATX and UPS have gained more than 40%, 17% and 3%, respectively, in the past three months.

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