JBHT stock is the IBD Stock Of The Day as the trucking company breaks out amid a key new partnership and expectations for solid profit growth.
J.B. Hunt Transport Services and several other shipping firms — including Old Dominion Freight Line and UPS — are faring well amid supply-chain challenges.
Intermodal Partner: Warren Buffett's BNSF
On Wednesday, J.B. Hunt Transport and BNSF Railway Co. announced they will jointly work to improve intermodal capacity. Warren Buffett's Berkshire Hathaway conglomerate owns BNSF. The companies cited growing demand for intermodal services, as companies look to reduce costs and their carbon footprint.
Intermodal transport uses several modes such as shipping, road and rail. It's seen as more efficient to get freight off trucks on highways and onto railroads. J.B. Hunt is the largest intermodal shipping company in the country.
On Jan. 19, J.B. Hunt Transport beat fourth-quarter earnings estimates despite Covid-related challenges. The company announced earlier in January that it will partner with Waymo, a unit of Alphabet, on autonomous freight trucks or robot trucks.
IBD Live: A New Tool For Daily Stock Market Analysis
JBHT Stock Technical Analysis
Bear in mind that while the overall market's attempted uptrend remains intact, it has not yet broken from its current status of "market in correction." That means all but the most risk-tolerant investors are best advised to remain in cash and on the sidelines until a follow-through day launches a fresh confirmed uptrend.
Shares of J.B. Hunt soared 9.6% to 218.06 in heavy volume on the stock market today amid the BNSF news. JBHT stock topped a 208.97 buy point from a flat base.
On both the daily and weekly chart, the relative strength line hit a new high as JBHT stock broke out, a bullish sign. That is marked by a blue dot at the end of the RS line on MarketSmith charts.
The RS line for JBHT stock shows a strong uptrend in the past couple of years. A rising RS line means that a stock is outperforming the S&P 500.
Other trucking and rail stocks are acting well. ODFL stock gained 4.7%, reclaiming its 50-day line and right on a trendline early entry. UPS stock rose 3.55% and is back above its 50-day, offering an early entry. Railroad owner Berkshire Hathaway also hit a fresh high Wednesday.
J.B. Hunt earns a superior IBD Composite Rating of 93 out of 99. The Comp Rating combines key fundamental and technical metrics in a single easy-to-use score.
JBHT stock shows an equally strong Relative Strength Rating of 91 out of a possible 99. That means it has outperformed 91% of all stocks in the past year. The stock was added to IBD Leaderboard and SwingTrader on Wednesday.
J.B. Hunt Earnings and Fundamental Analysis
The trucking company boasts a 92 EPS Rating. It has an SMR Rating of B.
Earnings fell in 2020. As pandemic headwinds eased, J.B. Hunt earnings rebounded 41% in 2021 as sales jumped 26%. In Q4, EPS swelled 58% and sales improved by 28%.
In 2022, Wall Street expects J.B. Hunt earnings to rise 22% as sales grow 15%, FactSet says.
J.B. Hunt shows rising fund ownership, according to IBD Stock Checkup. As of December 2021, 1,487 funds owned JBHT stock, up from 1,343 in March last year.
