Here's Why Investors Should Avoid J.B. Hunt Stock for Now

J.B. Hunt Transportation (JBHT) is currently mired in multiple headwinds, which, we believe, have made it an unimpressive investment option.

Let’s delve deeper.

JBHT: Key Risks to Watch

Dim Price Performance: The company’s price trend reveals that its shares have lost 20.8% so far this year compared with the transportation-truck industry’s 19.7% decline.

JBHT Stock YTD Price Comparison

Weak Zacks Rank: JBHT currently carries a Zacks Rank #4 (Sell).

Southward Earnings Estimate Revision: The Zacks Consensus Estimate for third-quarter 2025 earnings has moved 0.67% south in the past 60 days. For the current year, the consensus mark for earnings has been revised to 0.53% downward in the same time frame. The unfavorable estimate revisions indicate brokers’ lack of confidence in the stock.

Negative Earnings Surprise History: JBHT has a disappointing earnings surprise history. The company’s earnings lagged the Zacks Consensus Estimate in two of the last four quarters (outpaced the mark in the remaining two quarters), delivering an average miss of 0.28%.

Other Headwinds: JBHT continues to incur higher interest expense owing to higher interest rates and debt issuance costs. Net interest expense for the second quarter of 2025 increased 5% year over year due to a higher average consolidated debt balance and lower interest income.

J.B. Hunt’s weak cash position is worrisome. JBHT's cash and cash equivalents stood at $50.9 million at the end of the second quarter of 2025, much lower than the short-term debt of $699.44 million. This implies that the company does not have sufficient cash to meet its debt obligations. JBHT’s current ratio (a measure of liquidity) at the end of the second quarter of 2025 was 0.87. A current ratio of less than 1 indicates that a company may have problems paying off its short-term obligations.

The truck industry, of which J.B. Hunt is an integral part, has been persistently battling a driver shortage for several years. As old drivers are retiring, trucking companies are finding it difficult to find new drivers to take their place since the low-esteem job mostly does not appeal to the younger generation.

Bearish Industry Rank 

The industry to which JBHT belongs currently has a Zacks Industry Rank of 204 (out of 248 groups). Such a weak rank places the industry in the bottom 17% of the Zacks industries. Studies have shown that 50% of a stock price movement is directly tied to the performance of the industry group that it hails from.

In fact, a robust stock in a weak industry is likely to underperform an ordinary stock in a strong industry. Therefore, considering the industry’s performance becomes imperative.

Stocks to Consider

Investors interested in the Zacks Transportation sector may consider LATAM Airlines Group LTM and Ryanair Holdings plc (RYAAY). Each stock currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

LATAM Airlines has an expected earnings growth rate of 45% for the current year. LTM has a mixed earnings surprise history. Its earnings outpaced the Zacks Consensus Estimate in two of the trailing four quarters, missed once and met in the remaining one, delivering an average beat of 4.04%.

The Zacks Consensus Estimate for LTM’s 2025 earnings has moved 14% north in the past 60 days.

RYAAY has an expected earnings growth rate of 45% for the current year. RYAAY has an impressive earnings surprise history. The company’s earnings surpassed the Zacks Consensus Estimate in three of the last four quarters (missed the mark in the remaining quarter), delivering an average beat of 61.20%.

The Zacks Consensus Estimate for RYAAY’s 2025 earnings has moved 7.11% north in the past 60 days.

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This article originally published on Zacks Investment Research (zacks.com).

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