J.B. Hunt Got Hunted Down

I don’t usually look at transport stocks, with the exception of FedEx and UPS, but the the following article cut my eye yesterday,

J.B. Hunt Hits a Downgrade Speed Bump From Bank of America

J.B. Hunt stock was down 2.7%, or $2.42, at $86.84 in mid-afternoon trading on the Nasdaq Stock Market after Bank of America warned of a tougher road ahead for the trucking and transportation company amid higher general rail costs as well as shifting traffic patterns.

“Given secular headwinds of higher rail costs, shifting traffic patterns and refined rail lanes from Precision Scheduled Rail models, we believe volumes and JBHT’s multiple may face sustained pressure versus historical levels, particularly as truckload stocks have retreated to an 11 times average on 2019, from upper-teens over the past year,” Bank of America said in a note to clients.

Now, I must warn you, J.B Hunt’s chart is one of the ugliest charts I have looked at in the last 12 months…brace yourself.

Source Image

The chart suggest further downside on J.B. Hunt with the first target being the weekly demand at $75.

With a second target at the weekly demand at $57.

This post is my personal opinion. I’m not a financial advisor, this isn’t financial advise. Do your own research before making investment decisions.