Watch Out: Barbarians At The Gate For JB Hunt Transport Services (JBHT)
Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.
Trade-Ideas LLC identified
(
) as a "barbarian at the gate" (strong stocks crossing above resistance with today's range greater than 200%) candidate. In addition to specific proprietary factors, Trade-Ideas identified JB Hunt Transport Services as such a stock due to the following factors:
- JBHT has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $45.5 million.
- JBHT has traded 554,398 shares today.
- JBHT traded in a range 203.7% of the normal price range with a price range of $2.45.
- JBHT traded above its daily resistance level (quality: 12 days, meaning that the stock is crossing a resistance level set by the last 12 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).
Stocks matching the 'Barbarian at the Gate' criteria are worthwhile stocks to watch for a variety of factors including historical back testing and volatility. Trade-Ideas targets these opportunities because the stock is exhibiting an unusual behavior while displaying positive price action. In this case, the stock crossed an important inflection point; namely, 'resistance' while at the same time the range of the stock's movement in price is more than twice its normal size. This large range foreshadows a possible continuation as the stock moves higher.
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More details on JBHT:
J.B. Hunt Transport Services, Inc., together with its subsidiaries, provides surface transportation and delivery services in the continental United States, Canada, and Mexico. The stock currently has a dividend yield of 1%. JBHT has a PE ratio of 26.8. Currently there are 7 analysts that rate JB Hunt Transport Services a buy, 1 analyst rates it a sell, and 9 rate it a hold.
The average volume for JB Hunt Transport Services has been 709,500 shares per day over the past 30 days. JB Hunt Transport Services has a market cap of $9.8 billion and is part of the services sector and transportation industry. The stock has a beta of 0.43 and a short float of 4.1% with 7.10 days to cover. Shares are down 0.6% year-to-date as of the close of trading on Tuesday.
Analysis:
rates JB Hunt Transport Services as a
. The company's strengths can be seen in multiple areas, such as its growth in earnings per share, revenue growth, largely solid financial position with reasonable debt levels by most measures, increase in net income and solid stock price performance. We feel these strengths outweigh the fact that the company shows weak operating cash flow.
Highlights from the ratings report include:
- Despite its growing revenue, the company underperformed as compared with the industry average of 14.0%. Since the same quarter one year prior, revenues slightly increased by 9.2%. Growth in the company's revenue appears to have helped boost the earnings per share.
- HUNT (JB) TRANSPRT SVCS INC has improved earnings per share by 20.8% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, HUNT (JB) TRANSPRT SVCS INC increased its bottom line by earning $3.17 versus $2.86 in the prior year. This year, the market expects an improvement in earnings ($3.60 versus $3.17).
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500, but is less than that of the Road & Rail industry average. The net income increased by 20.1% when compared to the same quarter one year prior, going from $91.86 million to $110.31 million.
- The stock has risen over the past year as investors have generally rewarded the company for its earnings growth and other positive factors like the ones we have cited in this report. Looking ahead, the stock's rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that the other strengths this company displays justify these higher price levels.
- The debt-to-equity ratio is somewhat low, currently at 0.78, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.96 is somewhat weak and could be cause for future problems.
- You can view the full JB Hunt Transport Services Ratings Report.
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