One of the trickiest parts of investing is figuring out that fine line between opportunism and greed. Take the case of
J.B. Hunt (Nasdaq:
JBHT). This transportation company is seeing excellent growth in its intermodal business, and intermodal transport is likely to be a strong multi-year growth story. On the other hand, expectations are already pretty steep and competition is sure to ramp up. That makes this a tricky hold, as results are likely to stay strong for a while, but today's
valuation makes long-term underperformance more likely.
A Strong Start to the Year
J.B. Hunt definitely offered up a solid start to this year. Total revenue rose 17%, fueled by a 20% rise in the intermodal business. Truck revenue and dedicated service revenue were up much more modestly (8 and 7%, respectively), while the smaller Integrated Capacity Solutions business saw strong 30% growth but remains a relatively small operation.
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