J.B. Hunt Surprises With Intermodal, But The Future May Be More Dedicated

Transports like J.B. Hunt (JBHT) are often looked at as early-cycle plays, and while the market's abrupt shift toward looking past COVID-19 may be too much too soon, it has helped send these shares more than 75% higher from the March panic-lows. Although that level of appreciation doesn't seem to leave a lot of low-hanging fruit from a valuation perspective, I do see an argument for better performance from this company in the coming years, particularly, I see the company eventually achieving scale with its digital brokerage platform and leaning more toward building its dedicated trucking business further.

I can stretch to make a case for J.B. Hunt shares trading up into the low $150s, but it's not a comfortable stretch and I'm not convinced the U.S. economy is out of the woods. Even so, I think J.B. Hunt is a proven performer and if the shares were to sell off/retrace meaningfully, it's a name I'd definitely consider.

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J.B. Hunt Surprises With Intermodal, But The Future May Be More Dedicated