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J.B. Hunt (JBHT) to Buy Zenith Freight Lines From Bassett
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J.B. Hunt Transport Services, Inc. (JBHT - Free Report) will acquire the assets of Zenith Freight Lines, a wholly-owned subsidiary of Bassett Furniture Industries, for about $87 million. The transaction will be funded using J.B. Hunt’s existing cash balance. The deal is expected to close by Feb 28, 2022, subject to customary closing conditions.
President and CEO of J.B. Hunt, John Roberts, stated, “This investment enhances J.B. Hunt’s furniture delivery capabilities by expanding our nationwide, end-to-end supply chain solution for our customers, and we look forward to establishing a long-term connection with Bassett, a manufacturer and retailer of high-quality home furnishings and a leader in the industry”.
Post completion, J.B. Hunt will enter into a long-term services agreement with Bassett. JBHT will continue to provide the service Zenith has performed for Bassett for almost half a century.
The buyout will expand J.B. Hunt’s industry-leading Final Mile Services segment, which operates one of the largest nationwide, commingled cross-dock operations. JBHT has made many acquisitions in the past few years to expand its Final Mile network (delivery of goods to customers’ doorstep). With the online shopping space growing by leaps and bounds, last-mile deliveries (or final mile delivery) are witnessing tremendous growth.
Investors interested in the broader Zacks Transportation sector can also consider stocks like Knight-Swift Transportation Holdings Inc. (KNX - Free Report) , FedEx Corporation (FDX - Free Report) and Schneider National (SNDR - Free Report) .
The long-term expected earnings per share (three to five years) growth rate for Knight-Swift is pegged at 15%. A robust increase in revenues in the logistics segment is driving Knight-Swift’s top-line growth.
We are impressed by the company’s efforts to boost shareholders’ value via dividends and buybacks. Driven by the tailwinds, the stock has increased 41.4% in the past year. Knight-Swift currently sports a Zacks Rank #1.
The long-term expected earnings per share (three to five years) growth rate for FedEx is pegged at 12%. FDX is benefitting from a surge in e-commerce demand amid the pandemic.
FDX exited first-quarter fiscal 2022 with cash and equivalents of $6,853 million, much higher than its current debt of $125 million. Driven by the tailwinds, the stock has moved up 2.8% in the past year. FedEx currently carries a Zacks Rank #2.
The long-term expected earnings per share (three to five years) growth rate for Schneider is pegged at 20.7%. SNDR benefits from strong performance in the Intermodal and Logistics units.
SNDR’s third-quarter cash balance is also encouraging. Driven by the tailwinds, the stock has moved up 17.7% in the past year. Schneider currently carries a Zacks Rank #2.
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J.B. Hunt (JBHT) to Buy Zenith Freight Lines From Bassett
J.B. Hunt Transport Services, Inc. (JBHT - Free Report) will acquire the assets of Zenith Freight Lines, a wholly-owned subsidiary of Bassett Furniture Industries, for about $87 million. The transaction will be funded using J.B. Hunt’s existing cash balance. The deal is expected to close by Feb 28, 2022, subject to customary closing conditions.
President and CEO of J.B. Hunt, John Roberts, stated, “This investment enhances J.B. Hunt’s furniture delivery capabilities by expanding our nationwide, end-to-end supply chain solution for our customers, and we look forward to establishing a long-term connection with Bassett, a manufacturer and retailer of high-quality home furnishings and a leader in the industry”.
Post completion, J.B. Hunt will enter into a long-term services agreement with Bassett. JBHT will continue to provide the service Zenith has performed for Bassett for almost half a century.
The buyout will expand J.B. Hunt’s industry-leading Final Mile Services segment, which operates one of the largest nationwide, commingled cross-dock operations. JBHT has made many acquisitions in the past few years to expand its Final Mile network (delivery of goods to customers’ doorstep). With the online shopping space growing by leaps and bounds, last-mile deliveries (or final mile delivery) are witnessing tremendous growth.
Zacks Rank & Other Stocks to Consider
J.B. Hunt currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Investors interested in the broader Zacks Transportation sector can also consider stocks like Knight-Swift Transportation Holdings Inc. (KNX - Free Report) , FedEx Corporation (FDX - Free Report) and Schneider National (SNDR - Free Report) .
The long-term expected earnings per share (three to five years) growth rate for Knight-Swift is pegged at 15%. A robust increase in revenues in the logistics segment is driving Knight-Swift’s top-line growth.
We are impressed by the company’s efforts to boost shareholders’ value via dividends and buybacks. Driven by the tailwinds, the stock has increased 41.4% in the past year. Knight-Swift currently sports a Zacks Rank #1.
The long-term expected earnings per share (three to five years) growth rate for FedEx is pegged at 12%. FDX is benefitting from a surge in e-commerce demand amid the pandemic.
FDX exited first-quarter fiscal 2022 with cash and equivalents of $6,853 million, much higher than its current debt of $125 million. Driven by the tailwinds, the stock has moved up 2.8% in the past year. FedEx currently carries a Zacks Rank #2.
The long-term expected earnings per share (three to five years) growth rate for Schneider is pegged at 20.7%. SNDR benefits from strong performance in the Intermodal and Logistics units.
SNDR’s third-quarter cash balance is also encouraging. Driven by the tailwinds, the stock has moved up 17.7% in the past year. Schneider currently carries a Zacks Rank #2.