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Here's Why Investors Should Give J.B. Hunt Stock a Miss Now

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Key Takeaways

  • Estimates for JBHT's earnings revised down, with brokers showing little confidence in the stock.
  • Shares slid 17.3% in a year, while industry rank sits in the bottom 8% of all groups.
  • Liquidity worsened as the current ratio fell to 0.87 in Q2 2025, raising stability concerns.

J.B. Hunt Transportation (JBHT - Free Report) is grappling with financial challenges that are significantly impacting its performance. Weak liquidity is hurting the company’s prospects, making it an unattractive choice for investors’ portfolios.

Let’s delve deeper.

JBHT: Key Risks to Watch

Southward Earnings Estimate Revision: The Zacks Consensus Estimate for JBHT’s current-quarter earnings has been revised 1.96% downward over the past 60 days and is pegged at $1.50 per share. Meanwhile, the Zacks Consensus Estimate for 2025 earnings is pegged at $5.63 per share, indicating a 2.09% fall over the past 60 days.The unfavorable estimate revision indicates brokers’ lack of confidence in the stock.

Dim Price Performance: J.B. Hunt’sprice trend reveals that its shares have fallen 17.3% over the past year compared with the Transportation - Truck industry’s 19.3% decline.

Zacks Investment Research
Image Source: Zacks Investment Research

Weak Zacks Rank: JBHT currently carries a Zacks Rank #4 (Sell).

Unimpressive Earnings Surprise History: The company has a discouraging earnings surprise history, having surpassed the Zacks Consensus Estimate in two of the trailing four quarters and missing twice. The average negative surprise is 0.28%.

Bearish Industry Rank: The industry to which J.B. Hunt belongs currently has a Zacks Industry Rank of 227 (out of 246). Such an unfavorable rank places it in the bottom 8% of Zacks Industries.Studies show that 50% of a stock price movement is directly related to the performance of the industry group it belongs to.

A mediocre stock within a strong group is likely to outclass a robust stock in a weak industry. Reckoning the industry’s performance becomes imperative in this case.

Headwinds: J.B. Hunt is grappling with significant financial challenges, with surging operating expenses and weak liquidity. The total operating expenses rose 0.3% year over year in the second quarter of 2025. General and Administrative expenses, accounting for 30% of the total revenues, increased 1.7% year over year.

Moreover, the company’s financial stability is under pressure, as reflected by a declining current ratio (a measure of liquidity). JBHT’s current ratio fell from 1.41 in 2022 to 1.35 in 2023 and dropped further to 1.06 in 2024. This consistent downward trend is concerning as it raises questions about J.B. Hunt’s ability to meet its short-term debt obligations. In the second quarter of 2025, the current ratio is pegged at 0.87.

Stocks to Consider

Investors interested in the Transportation sector may consider LATAM Airlines Group (LTM - Free Report) and The Greenbrier Companies (GBX - Free Report) .

LTM currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

LTM has an expected earnings growth rate of 45% for the current year. The company has a mixed earnings surprise history. Its earnings outpaced the Zacks Consensus Estimate in two of the trailing four quarters, missed once and met in the remaining quarter, delivering an average beat of 4.04%.

GBX currently carries a Zacks Rank #2 (Buy).

Greenbrier has an expected earnings growth rate of 33% for the current year. The company has a mixed earnings surprise history. Its earnings outpaced the Zacks Consensus Estimate in three of the trailing four quarters and met once, delivering an average beat of 70%.

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