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196.64
USD
0.51%
196.64
USD
0.51%
169.00 384.33
52 weeks
52 weeks

Mkt Cap 465.31B

Shares Out 2.37B

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Should You Investigate J.B. Hunt Transport Services, Inc. (NASDAQ:JBHT) At US$195?

Today we're going to take a look at the well-established J.B. Hunt Transport Services, Inc. (NASDAQ:JBHT). The company's stock led the NASDAQGS gainers with a relatively large price hike in the past couple of weeks. With many analysts covering the large-cap stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price. However, could the stock still be trading at a relatively cheap price? Let’s take a look at J.B. Hunt Transport Services’s outlook and value based on the most recent financial data to see if the opportunity still exists. What's The Opportunity In J.B. Hunt Transport Services? According to my valuation model, J.B. Hunt Transport Services seems to be fairly priced at around 0.8% below my intrinsic value, which means if you buy J.B. Hunt Transport Services today, you’d be paying a fair price for it. And if you believe that the stock is really worth $196.73, then there’s not much of an upside to gain from mispricing. So, is there another chance to buy low in the future? Given that J.B. Hunt Transport Services’s share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us an opportunity to buy later on. This is based on its high beta, which is a good indicator for share price volatility. What kind of growth will J.B. Hunt Transport Services generate? Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. J.B. Hunt Transport Services' earnings growth are expected to be in the teens in the upcoming years, indicating a solid future ahead. This should lead to robust cash flows, feeding into a higher share value. What This Means For You Are you a shareholder? It seems like the market has already priced in JBHT’s positive outlook, with shares trading around its fair value. However, there are also other important factors which we haven’t considered today, such as the track record of its management team. Have these factors changed since the last time you looked at the stock? Will you have enough conviction to buy should the price fluctuates below the true value? Are you a potential investor? If you’ve been keeping tabs on JBHT, now may not be the most advantageous time to buy, given it is trading around its fair value. However, the positive outlook is encouraging for the company, which means it’s worth diving deeper into other factors such as the strength of its balance sheet, in order to take advantage of the next price drop. If you want to dive deeper into J.B. Hunt Transport Services, you'd also look into what risks it is currently facing. Our analysis shows 2 warning signs for J.B. Hunt Transport Services (1 doesn't sit too well with us!) and we strongly recommend you look at them before investing. If you are no longer interested in J.B. Hunt Transport Services, you can use our free platform to see our list of over 50 other stocks with a high growth potential. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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