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Unusual Buying Should Drive This Trucking Stock Much Higher

JBHT has seen a dramatic increase in momentum in the past month


JB Hunt Transport Services (JBHT) — This North American transportation and delivery services company has been a favorite of mine whenever the economy turns, since it is usually at the forefront of the action. It is a component of the Dow Jones Transportation Average. 

After a 10% increase in sales in 2013, S&P forecasts 11% revenue growth in both 2014 and 2015. It looks for operating earnings per share (EPS) of $3.21 in 2014 and $3.84 in 2015. S&P’s 12-month price target is $88.

JBHT has been in a consolidation for one year with support at about $70 and resistance around $80. However, in the past month, there has been an unusual increase in daily buying. In addition to the dramatic increase in momentum (not shown), its 20-day moving average sliced up through both the 50-day and 200-day moving averages. 

This very positive technical picture is likely to result in a break from the stubborn 12-month consolidation and drive the stock to the upper $80s. Buy JBHT at the market. The stock currently yields 1%.

 JBHT Chart
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