S&P 500 falls on pressure from retail stocks, weak jobless claims
Investing.com - Benchmark has reiterated its Buy rating and $165.00 price target on J.B. Hunt Transport Services (NASDAQ:JBHT) ahead of the company’s second-quarter earnings report, despite slightly lowering its estimates. According to InvestingPro data, the company is currently trading near its Fair Value, with 9 analysts recently revising their earnings expectations downward. The transport giant is set to report earnings in 5 days.
The research firm noted that intermodal volume has been more stable than feared in the second quarter, with domestic intermodal volumes remaining steady even as international volumes weakened due to lower imports. Retailers appear to have built up inventory, especially in early June, which helped mitigate potential disruption from May’s drop in imports.
While excess truckload capacity still exists, the market has become more balanced, and the reinstatement of the English Language Proficiency standard could further tighten capacity. Pricing in J.B. Hunt’s head haul lanes has been positive, though lower than management initially expected.
Benchmark expects J.B. Hunt’s intermodal volumes to show year-over-year growth, but anticipates sequential and year-over-year decreases in revenue per load due to mix changes and fuel factors. The firm maintains its margin assumptions for the intermodal segment.
The research firm projects J.B. Hunt’s second-quarter results will align with consensus estimates, with intermodal results in-line offsetting weaker performance in the Dedicated and Final Mile segments.
In other recent news, J.B. Hunt Transport Services has announced a quarterly dividend of $0.44 per share, scheduled for distribution on May 23, 2025, to shareholders of record as of May 9, 2025. In a significant development, shareholders have re-elected all nine director nominees and approved executive compensation, as well as ratified PricewaterhouseCoopers LLP as the company’s independent accounting firm for 2025. Meanwhile, BofA Securities has raised its price target for J.B. Hunt to $171, citing solid intermodal volume growth, although noting a slowdown in June due to transcontinental volume pressures. Conversely, Goldman Sachs has downgraded the stock to Neutral, maintaining a price target of $164, due to concerns over potential global recession impacts and other risks. Additionally, Raymond (NSE:RYMD) James has reiterated an Outperform rating with a $155 price target, praising J.B. Hunt’s focus on return on invested capital and strategic capital allocation. The company’s strategy includes increasing container counts by 40% from 2022 levels by 2027. These recent developments highlight J.B. Hunt’s ongoing efforts to enhance shareholder value and navigate economic challenges.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.