There is definitely such a thing as being “too busy”, and the combination of intense demand, labor and asset shortages, the ongoing pandemic, and so on has made day-to-day operations quite challenging for J.B. Hunt (NASDAQ:JBHT). I believe the company is managing this chaos well, and I do believe the company will start seeing smoother results in the coming quarters, possibly setting the stage for a period of “over-earning” as the company reaps the benefit of higher pricing.
I thought J.B. Hunt was a potential “buy the dip” opportunity back in October of 2020, but I wasn’t completely sold on the story then. Since then, the shares have only modestly outperformed the S&P 500 and the industrial stock sector, though it has outperformed the Dow Jones Transportation by a nice 10-point margin. I do think there is beat-and-raise potential in the second half, but I think the longer-term return potential is more average now.
Read the full article here:
J.B. Hunt Delivering Stronger Results Through Challenging Times
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