Should You Think About Buying J.B. Hunt Transport Services, Inc. (NASDAQ:JBHT) Now?

Today we're going to take a look at the well-established J.B. Hunt Transport Services, Inc. (NASDAQ:JBHT). The company's stock received a lot of attention from a substantial price movement on the NASDAQGS over the last few months, increasing to US$219 at one point, and dropping to the lows of US$162. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether J.B. Hunt Transport Services' current trading price of US$163 reflective of the actual value of the large-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at J.B. Hunt Transport Services’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.

View our latest analysis for J.B. Hunt Transport Services

What's The Opportunity In J.B. Hunt Transport Services?

According to our valuation model, J.B. Hunt Transport Services seems to be fairly priced at around 9.68% above our intrinsic value, which means if you buy J.B. Hunt Transport Services today, you’d be paying a relatively fair price for it. And if you believe that the stock is really worth $148.22, then there isn’t really any room for the share price grow beyond what it’s currently trading. Although, there may be an opportunity to buy in the future. This is because J.B. Hunt Transport Services’s beta (a measure of share price volatility) is high, meaning its price movements will be exaggerated relative to the rest of the market. If the market is bearish, the company’s shares will likely fall by more than the rest of the market, providing a prime buying opportunity.

What kind of growth will J.B. Hunt Transport Services generate?

Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations. With profit expected to grow by 62% over the next couple of years, the future seems bright for J.B. Hunt Transport Services. It looks like higher cash flow is on the cards for the stock, which should feed into a higher share valuation.

What This Means For You

Are you a shareholder? It seems like the market has already priced in JBHT’s positive outlook, with shares trading around its fair value. However, there are also other important factors which we haven’t considered today, such as the track record of its management team. Have these factors changed since the last time you looked at the stock? Will you have enough conviction to buy should the price fluctuates below the true value?

Are you a potential investor? If you’ve been keeping an eye on JBHT, now may not be the most advantageous time to buy, given it is trading around its fair value. However, the positive outlook is encouraging for the company, which means it’s worth further examining other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.

So if you'd like to dive deeper into this stock, it's crucial to consider any risks it's facing. Every company has risks, and we've spotted 1 warning sign for J.B. Hunt Transport Services you should know about.

If you are no longer interested in J.B. Hunt Transport Services, you can use our free platform to see our list of over 50 other stocks with a high growth potential.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.