J.B. Hunt: Surging Freight Market Justifies The Rally

J.B. Hunt Transport has surged 86% over the past year, fueled by a sharp freight market recovery and strong Q2 results. JBHT delivered $1.91 EPS on $3.5 billion revenue, with margin expansion driven by $135 million in cost cuts and robust intermodal growth. Structural industry shifts, including a Supreme Court ruling and tight capacity, favor large brokers like JBHT, enabling further market share gains. Despite strong momentum and likely estimate upgrades, JBHT trades at a full 25x 2027E EPS; I rate it a "Hold" given valuation risk.

Shares of J.B. Hunt Transport (JBHT) have been an extraordinary performer over the past year, gaining about 86%. Those gains show no signs of slowing down, with the stock surging another 8% in late trading Wednesday as investors digested excellent quarterly results. The company