J.B. Hunt Transport Services Inc. (JBHT): Today's Featured Transportation Laggard

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

J.B. Hunt Transport Services ( JBHT) pushed the Transportation industry lower today making it today's featured Transportation laggard. The industry as a whole closed the day up 0.2%. By the end of trading, J.B. Hunt Transport Services fell 84 cents (-1.5%) to $54.57 on average volume. Throughout the day, 813,307 shares of J.B. Hunt Transport Services exchanged hands as compared to its average daily volume of 992,200 shares. The stock ranged in price between $54.37-$55.46 after having opened the day at $55.40 as compared to the previous trading day's close of $55.41. Other companies within the Transportation industry that declined today were: Seanergy Maritime Holdings ( SHIP), down 5.3%, Swift Transportation ( SWFT), down 4%, DS Torm ( TRMD), down 3.7%, and Quality Distribution ( QLTY), down 3.3%.

J.B. Hunt Transport Services, Inc., together with its subsidiaries, provides transportation and delivery services in the continental United States, Canada, and Mexico. J.B. Hunt Transport Services has a market cap of $6.47 billion and is part of the services sector. The company has a P/E ratio of 23.1, above the average transportation industry P/E ratio of 22.8 and above the S&P 500 P/E ratio of 17.7. Shares are up 23.9% year to date as of the close of trading on Friday. Currently there are 12 analysts that rate J.B. Hunt Transport Services a buy, no analysts rate it a sell, and 13 rate it a hold.

TheStreet Ratings rates J.B. Hunt Transport Services as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, impressive record of earnings per share growth, compelling growth in net income, notable return on equity and solid stock price performance. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

On the positive front, DryShips ( DRYS), up 6.3%, United Continental Holdings ( UAL), up 5.7%, US Airways Group ( LCC), up 5.1%, and YRC Worldwide ( YRCW), up 4.9%, were all gainers within the transportation industry with Delta Air Lines ( DAL) being today's featured transportation industry leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the transportation industry could consider iShares Dow Jones Transportation ( IYT) while those bearish on the transportation industry could consider ProShares UltraShort Industrials ( SIJ).
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