Let's talk about the popular J.B. Hunt Transport Services, Inc. (NASDAQ:JBHT). The company's shares received a lot of attention from a substantial price movement on the NASDAQGS over the last few months, increasing to US$197 at one point, and dropping to the lows of US$168. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether J.B. Hunt Transport Services' current trading price of US$171 reflective of the actual value of the large-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at J.B. Hunt Transport Services’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.

Check out our latest analysis for J.B. Hunt Transport Services

What's The Opportunity In J.B. Hunt Transport Services?

The stock seems fairly valued at the moment according to our valuation model. It’s trading around 4.3% below our intrinsic value, which means if you buy J.B. Hunt Transport Services today, you’d be paying a reasonable price for it. And if you believe that the stock is really worth $178.86, then there’s not much of an upside to gain from mispricing. Is there another opportunity to buy low in the future? Since J.B. Hunt Transport Services’s share price is quite volatile, we could potentially see it sink lower (or rise higher) in the future, giving us another chance to buy. This is based on its high beta, which is a good indicator for how much the stock moves relative to the rest of the market.

What kind of growth will J.B. Hunt Transport Services generate?

Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations. With profit expected to grow by 62% over the next couple of years, the future seems bright for J.B. Hunt Transport Services. It looks like higher cash flow is on the cards for the stock, which should feed into a higher share valuation.

What This Means For You

Are you a shareholder? It seems like the market has already priced in JBHT’s positive outlook, with shares trading around its fair value. However, there are also other important factors which we haven’t considered today, such as the financial strength of the company. Have these factors changed since the last time you looked at the stock? Will you have enough confidence to invest in the company should the price drop below its fair value?

Are you a potential investor? If you’ve been keeping an eye on JBHT, now may not be the most optimal time to buy, given it is trading around its fair value. However, the positive outlook is encouraging for the company, which means it’s worth diving deeper into other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.

So while earnings quality is important, it's equally important to consider the risks facing J.B. Hunt Transport Services at this point in time. For example - J.B. Hunt Transport Services has 1 warning sign we think you should be aware of.

If you are no longer interested in J.B. Hunt Transport Services, you can use our free platform to see our list of over 50 other stocks with a high growth potential.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.