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J.B. Hunt (JBHT) Up on Deal With Warren Buffett's BNSF Railway
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Shares of J.B. Hunt Transport Services (JBHT - Free Report) gained 9.6% on Mar 17 from the Mar 16 closing following the deal with Berkshire Hathaway's (BRK.B - Free Report) BNSF Railway. Warren Buffett, one of the most successful investors of all times, is currently the chairman and CEO of this Omaha, NE-based BRK.B.
The deal aims to substantially improve intermodal capacity to meet the buoyant demand scenario as far as intermodal services are concerned. The agreement with Warren Buffett’s BNSF Railway found favor with John Roberts, the president and CEO of J.B. Hunt. This is evident from his statement, “Together, J.B. Hunt and BNSF will enhance their work to bring back the consistency and reliability customers expect with intermodal services and further embrace intermodal conversion and transloading services. This priority falls directly in line with J.B. Hunt’s mission statement to create the most efficient transportation network in North America.” Demand for intermodal services has grown by leaps and bounds in recent years with companies aiming to secure capacity, while primarily reducing their cost structure.
J.B. Hunt aims to expand its intermodal fleet to 150,000 containers over the next three to five years, up more than 40% from its intermodal fleet size at 2021 end. JBHT has completed more than four million intermodal loads since 2020.
On its part, BNSF Railway will increase capability at many of its intermodal facilities apart from bolstering its railcar equipment. The measures intend to meet the likely increase in container capacity going forward. To increase efficiency and further integrate its service with JBHT, BNSF will also provide several property locations around key intermodal hubs in southern California, Chicago and other key markets.
Zacks Rank and Key Pick
J.B. Hunt currently carries a Zacks Rank #3 (Hold). A better-ranked stock in the Transportation-Truck industry is Old Dominion Freight Line (ODFL - Free Report) , carrying a Zacks Rank #2 (Buy) at present. Old Dominion’s efforts to reward its shareholders through dividends and share buybacks are impressive. In 2021, ODFL rewarded its shareholders with $691.4 million. Moreover, in February 2022, ODFL’s board cleared a 50% increase in its quarterly dividend payout.
Shares of Old Dominion have gained 40.6% in a year’s time. ODFL has an excellent surprise record, with its earnings having outpaced the Zacks Consensus Estimate in each of the last four quarters. The average beat is 6.5%.
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J.B. Hunt (JBHT) Up on Deal With Warren Buffett's BNSF Railway
Shares of J.B. Hunt Transport Services (JBHT - Free Report) gained 9.6% on Mar 17 from the Mar 16 closing following the deal with Berkshire Hathaway's (BRK.B - Free Report) BNSF Railway. Warren Buffett, one of the most successful investors of all times, is currently the chairman and CEO of this Omaha, NE-based BRK.B.
The deal aims to substantially improve intermodal capacity to meet the buoyant demand scenario as far as intermodal services are concerned. The agreement with Warren Buffett’s BNSF Railway found favor with John Roberts, the president and CEO of J.B. Hunt. This is evident from his statement, “Together, J.B. Hunt and BNSF will enhance their work to bring back the consistency and reliability customers expect with intermodal services and further embrace intermodal conversion and transloading services. This priority falls directly in line with J.B. Hunt’s mission statement to create the most efficient transportation network in North America.” Demand for intermodal services has grown by leaps and bounds in recent years with companies aiming to secure capacity, while primarily reducing their cost structure.
J.B. Hunt aims to expand its intermodal fleet to 150,000 containers over the next three to five years, up more than 40% from its intermodal fleet size at 2021 end. JBHT has completed more than four million intermodal loads since 2020.
On its part, BNSF Railway will increase capability at many of its intermodal facilities apart from bolstering its railcar equipment. The measures intend to meet the likely increase in container capacity going forward. To increase efficiency and further integrate its service with JBHT, BNSF will also provide several property locations around key intermodal hubs in southern California, Chicago and other key markets.
Zacks Rank and Key Pick
J.B. Hunt currently carries a Zacks Rank #3 (Hold). A better-ranked stock in the Transportation-Truck industry is Old Dominion Freight Line (ODFL - Free Report) , carrying a Zacks Rank #2 (Buy) at present. Old Dominion’s efforts to reward its shareholders through dividends and share buybacks are impressive. In 2021, ODFL rewarded its shareholders with $691.4 million. Moreover, in February 2022, ODFL’s board cleared a 50% increase in its quarterly dividend payout.
Shares of Old Dominion have gained 40.6% in a year’s time. ODFL has an excellent surprise record, with its earnings having outpaced the Zacks Consensus Estimate in each of the last four quarters. The average beat is 6.5%.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.