J.B. Hunt stock maintains Buy rating at Benchmark despite lowered estimates

Investing.com - Benchmark has reiterated a Buy rating and $165.00 price target on J.B. Hunt Transport Services (NASDAQ:JBHT) ahead of the company’s October 15 third-quarter earnings report, despite slightly lowering estimates. According to InvestingPro data, eight analysts have recently revised their earnings expectations downward, with analyst targets ranging from $133 to $180.

The research firm noted that intermodal volume growth has been modestly positive year over year, supported by rising imports through August and steady domestic volumes throughout the quarter. While InvestingPro data shows overall revenue declined 2.24% in the last twelve months, intermodal demand has remained stable in 2025, particularly compared to trucking, given strong first-half import growth.

Benchmark cautioned that demand could soften in the fall if inbound container volumes decline as forecast, potentially leading to a muted peak season. However, domestic intermodal volumes typically lag imports by 6-8 weeks, suggesting potential for domestic growth in the fourth quarter, depending on consumer spending and retailer inventory management.

Strong rail service and continued discounts to truckload rates should support further truck-to-intermodal conversions, especially in the eastern network, according to the firm. Benchmark expects J.B. Hunt’s JBI volumes to be down year over year on tougher comparisons in the second half, but sequentially higher.

Despite modest increases in core pricing, mix and fuel headwinds are likely to result in a year-over-year decline in revenue per load, though Benchmark anticipates sequential improvement. The combination of slight price gains, improved network balance, and cost-saving initiatives should drive stable to slightly higher intermodal margins quarter over quarter. Trading at a P/E of 25.4x, InvestingPro analysis suggests J.B. Hunt is currently undervalued. For deeper insights into JBHT’s valuation and 12+ additional ProTips, explore the comprehensive Pro Research Report available on InvestingPro.

In other recent news, J.B. Hunt Transport Services reported its second-quarter earnings per share of $1.31, aligning with Benchmark’s estimate and slightly surpassing the FactSet consensus of $1.30. Despite higher interest and tax expenses, the company’s core operations slightly exceeded analyst expectations. Benchmark has maintained its Buy rating and a price target of $165.00 for the company. Meanwhile, UBS downgraded J.B. Hunt from Buy to Neutral, citing concerns about the soft freight market environment and a lack of anticipated tightening in 2026 to support pricing increases. UBS did, however, raise its price target slightly to $157.00. Stifel also adjusted its stance, lowering the price target to $140.00 due to volume growth constraints and macroeconomic demand concerns. Additionally, J.B. Hunt has appointed Brad Delco as Chief Financial Officer, effective September 1. The company declared a regular quarterly dividend of $0.44 per share, payable on August 22, 2025, to shareholders of record as of August 8, 2025.

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