These are top 10 stocks traded on the Robinhood UK platform in July
On Monday, BofA Securities adjusted its outlook on J.B. Hunt Transport Services (NASDAQ:JBHT), reducing the price target from the previous $189.00 to $170.00, while still maintaining a Buy rating on the company’s shares. The adjustment comes as the firm recalibrates its expectations in light of current economic conditions and uncertainties. The stock currently trades near its 52-week low of $147, with InvestingPro data showing a 22.4% decline over the past year.
Ken Hoexter, an analyst at BofA Securities, provided insight on the decision, indicating that despite the reduction in the price objective, the firm continues to recommend purchasing J.B. Hunt shares. The rationale behind the maintained Buy rating is the anticipation of earnings growth from what is considered a low point. Hoexter noted that the price target is now set at 28 times the estimated earnings per share (EPS) for 2025, a decrease from the previously projected 31 times the EPS. According to InvestingPro, the company maintains strong fundamentals with 22 consecutive years of dividend payments and an impressive 11-year streak of dividend increases, demonstrating financial stability despite current market challenges.
The recalibration of the target price factors in the near-term macroeconomic challenges and the unpredictability surrounding tariffs. However, the new multiple is still higher than the historical average, which ranges between 16 to 24 times over the past two decades, with a more recent five-year range of 20 to 25 times. The analyst’s long-term view is that J.B. Hunt’s earnings will recover from the trough experienced in 2024, and the price target corresponds to a more normalized 22.4 times the estimated EPS for 2026. InvestingPro’s analysis suggests the stock is currently undervalued, with additional ProTips and detailed financial metrics available to subscribers.
Moreover, BofA Securities has slightly adjusted its earnings estimates for J.B. Hunt. The EPS forecast for the first quarter of 2025 and the full year of 2025 has been lowered by 1% to $1.17 and $6.05, respectively, down from the previous estimates of $1.18 and $6.10. The revision reflects the impact of cost pressures on the company’s financial performance.
J.B. Hunt Transport Services, a prominent player in the transportation and logistics industry, is navigating through a period characterized by cost challenges. Yet, the firm’s stock continues to hold a Buy rating from BofA Securities, with expectations of earnings improvement in the coming years.
In other recent news, J.B. Hunt Transport Services, Inc. reported a fourth-quarter earnings per share (EPS) of $1.53, which was below the FactSet consensus estimate of $1.61. However, after adjusting for an impairment charge related to the BNSF acquisition, the EPS was $1.66, surpassing expectations. The company has issued $750 million in senior notes due 2030, with a 4.900% interest rate, as part of its strategic financial planning. Additionally, Benchmark analysts have reiterated their Buy rating on J.B. Hunt, despite reducing their earnings estimates for the first quarter and full-year 2025 and 2026.
J.B. Hunt has also introduced a new executive bonus program that ties compensation to performance metrics such as operating income, revenue excluding fuel surcharges, and safety performance. The company announced a 2.3% increase in its quarterly dividend to $0.44 per share, reflecting its commitment to shareholder value. Director James L. Robo recently purchased $9.99 million worth of J.B. Hunt stock, increasing his direct ownership to 88,763 shares, a move often seen as a sign of confidence in the company’s future. These developments highlight J.B. Hunt’s ongoing efforts to manage its financial health and align executive compensation with performance objectives.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.