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.

JBHT: Key Risks to Watch

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.

Dim Price Performance:  The company’s price trend reveals that its shares have plunged 16.3% over the past year compared with the industry’s 25.6% loss.

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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%.

Bearish Industry Rank: The industry to which JBHT belongs currently has a Zacks Industry Rank of 200 (out of 250). Such an unfavorable rank places it in the bottom 19% of Zacks industries. Studies show that 50% of a stock price movement is directly related to the performance of the industry group it belongs to.

A mediocre stock within a strong group is likely to outclass a robust stock in a weak industry. Reckoning the industry’s performance becomes imperative.

Headwinds: J.B. Hunt's top line continues to grapple with weakness across the majority of its business segments. Higher net interest expense (owing to higher interest rates and debt issuance cost) is likely to mar J.B. Hunt’s bottom line. The company’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.

The truck industry, of which JBHT is an integral part, has been persistently battling a driver shortage for several years. As old drivers retire, trucking companies are finding it difficult to find new drivers to take their place since the low-esteem job mostly does not appeal to the younger generation.

Stocks to Consider

Investors interested in the Zacks Transportation sector may also consider United Airlines UAL and SkyWest SKYW. Each stock currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

United Airlines has an expected earnings growth rate of 21.11% for the current year. The Zacks Consensus Estimate for UAL’s 2025 earnings per share has been revised 10.6% 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 UAL have surged 161.2% in the past year.

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.

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