J.B. Hunt Transport Services Inc. is a transportation, delivery and logistic company that is headquartered in Arkansas, North America. The company transports a variety of products including automotive parts, department store merchandise, paper and wood products, food and beverages, plastics, chemicals, and manufacturing materials and supplies. The company also offers dedicated contract services, truckload freight transportation, transportation management and logistics services, as well as also innovative supply chain solutions for a variety of customers with its intermodal operation providing a unique advantage in the industry.
Technically, a symmetrical triangle pattern in an uptrend makes the stock attractive as an investing option (see the black converging trendline on the main chart as well as insert). The pattern indicates that buyers are consistently stepping in at higher lows, demonstrating their willingness to support the price even during the consolidation phase.
The stock remains above its 200-day simple moving average, showing that the long-term trend is bullish. This could also be a potential support level.
Relative Strength Index (RSI) forward calculations suggest that the share will be in overbought territory around $225, which classifies our profit target of $201 as realistic. We suggest a low capital at-risk allocation to this trade.
Share Information
| Share code | JBHT |
|---|---|
| Industry | Transportation |
| Market Capital (USD) | 18.53 billion |
| One year total return | 14.44% |
| Return year-to-date | 3.00% |
| Current price(USD) | 178.77 |
| 52 Week high(USD) | 200.64 |
| 52 Week low(USD) | 154.04 |
| Financial year end | December |
| Closing paragraph | The stock holds a Beta of 0.89, which indicates it is less volatile than the S&P 500 index. The stock price is expected to experience some moderate fluctuations in the future |
Consensus Expectations (Bloomberg)
| FY22 | FY23E | FY24E | FY25E | |
|---|---|---|---|---|
| Headline Earnings per Share (EUR) | 9.21 | 8.35 | 9.48 | 10.57 |
| Growth (%) | -9.31 | 13.49 | 11.49 | |
| Dividend Per Share (EUR) | 1.60 | 1.67 | 1.75 | 1.81 |
| Growth (%) | 4.06 | 4.86 | 3.49 | |
| Forward PE (times) | 21.40 | 18.86 | 16.91 | |
| Forward Dividend Yield (%) | 0.93 | 0.98 | 1.01 | |
| Closing paragraph | Earnings are expected to be constrained over FY23, after which, growth is expected to improve towards the lower teens from FY24 onwards. | |||
Buy/Sell Rationale
Technical Analysis:
Long-term fundamental view:
| Share Name and position |
HLMN - Take Profit (Close the position) |
COST - Buy (Continue to hold) |
VXF - Buy (Continue to hold) |
|---|---|---|---|
| Entry | 8.01 | 501.27 | 139.26 |
| Current | 8.79 | 530.33 | 146.49 |
| Movement | 9.7% | 5.8% | 5.2% |
| Summary text | We closed the trade early to lock in profit and reduce risk. |
We continue to observe a confluence of technical indicators that aligns with a bullish trend. The share is trading above its 200-day simple moving average. Upside momentum supports a bullish bias.
Our profit target is $560, with a trailing stop-loss of $508. Exit the position around 7 July 2023. |
An incomplete symmetrical triangle pattern remains of interest. The ETF is trading above its 200-day simple moving average. Upside momentum supports the bullish trend.
Our profit target is $153 with a trailing stop-loss at $141. Exit the position on 2 November 2023. |
| Share Name and position |
HACK - BUY (Continue to hold) |
HD - Buy (Continue to hold) |
AIG - Buy (Continue to hold) |
|---|---|---|---|
| Entry | 47.58 | 301.09 | 56.08 |
| Current | 49.79 | 313.74 | 56.45 |
| Movement | 4.6% | 4.2% | 3.2% |
| Summary text |
The price remains above a support level and continues to trade above the 200-day simple moving average. Upside momentum has halted, which is a concern.
Our profit target is $340 with a trailing stop-loss of $47.80. Exit the position around 4 August 2023. |
The price pattern is currently indicative of an accumulation phase. Notably, the price is trending above its 200-day simple moving average. The presence of upward momentum reinforces the bullish trend direction
Our profit target is $340 with a trailing stop-loss at $299. Exit the position on 15 September 2023. |
The stock is currently displaying a broadening top pattern, with the price testing its 200-day simple moving average. Upside momentum supports a bullish bias.
Our profit target is $62, with a trailing stop-loss of $53. Exit the position around 2 August 2023. |
