J.B. Hunt Transport Services, Inc. JBHT is currently mired in multiple headwinds, which, we believe, have made it an unimpressive investment option.

Let’s delve deeper.

J.B. Hunt's top line continues to grapple with weakness across the majority of its business segments. The total fourth-quarter 2024 operating revenues were $3.15 billion, which beat the Zacks Consensus Estimate of $3.13 billion but declined 4.8% year over year. Total operating revenues, excluding fuel surcharge revenue, decreased 2% year over year. The downside was owing to a 3% and 2% decline in revenue per load, excluding fuel surcharge revenues, in intermodal and Truckload, respectively, a 4% decline in average trucks in Dedicated Contract Services, and a 22% decline in load volume in Integrated Capacity Solutions.

Higher net interest expenses are likely to mar J.B. Hunt’s bottom line. JBHT continues to incur higher interest expenses owing to higher interest rates and debt issuance costs. Net interest expense for 2024 increased 23.9% year over year due to higher effective interest rates and consolidated debt balance, partially offset by higher interest income.

J.B. Hunt’s weak cash position is worrisome. JBHT's cash and cash equivalents stood at $46.98 million at the end of the fourth quarter of 2024, much lower than the short-term debt of $500 million. This implies that the company does not have sufficient cash to meet its debt obligations.

Driver shortage continues to be a major challenge facing the trucking industry. As old drivers retire, trucking companies find it difficult to hire drivers since the job does not appeal to the younger generation.

Partly due to these headwinds, shares of JBHT have plunged 22% over the past year compared with the transportation-truck industry’s decline of 35.7%.

One-Year JBHT Stock Price Comparison

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Southward Earnings Estimate Revision: The Zacks Consensus Estimate for current-quarter earnings has moved 23.1% south in the past 60 days. For the current year, the consensus mark for earnings has been revised to 14.5% downward in the same time frame. The unfavorable estimate revisions indicate brokers’ lack of confidence in the stock.

Weak Zacks Rank and Style Score: JBHT currently carries a Zacks Rank #4 (Sell). The company’s current Value Score of C shows its unattractiveness.

Unimpressive Earnings Surprise History: JBHT has a discouraging earnings surprise history, having missed the Zacks Consensus Estimate in three of the trailing four quarters (surpassed the same in the remaining quarter). The average miss is 8.37%.

Stocks to Consider

Investors interested in the Zacks Transportation sector may consider SkyWest SKYW and Allegiant Travel Company (ALGT). While SkyWest sports a Zacks Rank #1 (Strong Buy), Allegiant carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

SkyWest

SkyWest, founded in 1972, is based in St. George and operates regional jets for major U.S. airlines. SKYW’s track record of successfully meeting the requirements of each of its airline heavyweight partners bodes well for the company. Revenues from flying agreements (which account for the bulk of the top line) are impressive owing to SKYW’s above ability. Owing to an uptick in air travel demand, passenger volumes have been upbeat and are likely to increase going forward as well. This is likely to keep SKYW's top line in good shape.

SKYW has an impressive earnings surprise history. The company's earnings outpaced the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 16.71%. The Zacks Consensus Estimate for 2025 earnings per share has been revised 7.9% upward in the past 60 days.

Shares of SKYW have surged 32.1% in the past year. SKYW has an expected earnings growth rate of 15.96% for the current year.

Allegiant

Allegiant has an expected earnings growth rate of more than 100% for the current year. The Zacks Consensus Estimate for ALGT’s 2025 earnings per share has been revised 36% upward in the past 60 days.

The company has an encouraging track record with respect to the earnings surprise, having surpassed the Zacks Consensus Estimate in each of the trailing four quarters. The average beat is 22.93%. Shares of ALGT have lost 21.4% in the past year.

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J.B. Hunt Transport Services, Inc. (JBHT) : Free Stock Analysis Report

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This article originally published on Zacks Investment Research (zacks.com).

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