2024-07-06 01:27:46 ET
Summary
- J.B. Hunt Transport Services stock price declined >20% this YTD, prompting an analysis of its investment grade status.
- The company operates in transportation + logistics markets with capital efficiencies, but this competitive advantage may be shortening in duration.
- Valuation looks fair at current levels, with potential for further multiple contraction and downside risks.
Investment thesis
Following a >20% decline in its stock price, I wanted to check whether J.B. Hunt Transport Services ( JBHT ) was an investment grade company, or whether the embedded risk was too great to allocate some of my precious, hard-earned capital. Founded in 1961, the company is headquartered in Arkansas and is one of the largest surface transportation, delivery, and logistics companies in North America....
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J.B. Hunt Transport: Competitive Advantage Period Fading