Should You Invest in J.B. Hunt?

PHOTO CREDIT: J.B. Hunt

OVERVIEW

Why You Should?

  1. J.B. Hunt offers its customers several ways to transport products. Customers can use the company’s intermodal to transfer freight from Point A to Point B, they can use the company’s Dedicated Contracted Services to design supply chains and fulfill logistic requirements, they can use Integrated Capacity Solutions as a regular freight service, and they can also use Truckload to transport other freight.
  2. J.B. Hunt has seen rising demand over the past couple of years as mentioned before. The company has seen rising revenues and profits over the past financial years and has developed a stronger balance sheet. This will help the company go through many times of weak economies and allow them to further grow. In the financial year of 2019, the company reported revenues of around 9.2 billion and profits of over 515 million. Both of these metrics are up from the financial year of 2018 when the company reported revenues of around 8.6 billion and profits of over 489 million. (PHOTO CREDIT: Yahoo Finance)

Why You Should Not?

  1. J.B. hunt faces competition from several players. Rail companies like Union Pacific and other logistical companies like FedEx and Old Dominion Freight Line might hurt the company’s future growth as consumers have tons of options to pick from.
  2. Trade Tensions will hurt the business of J.B. Hunt. Because the company transports some of its freight internationally, it will negatively impact the company’s volumes. Consumers will see rising costs to trade internationally due to tariffs and other duties. J.B. Hunt will see a reducing volume of freight which will hurt the company.

MY OPINION

--

--

Aaditya Patel is a writer who publishes analysis on companies publicly traded on the NYSE. Follow him @the_investing787 on Instagram for summary posts.

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store
Aaditya Patel

Aaditya Patel is a writer who publishes analysis on companies publicly traded on the NYSE. Follow him @the_investing787 on Instagram for summary posts.