J B Hunt Transport Services Inc (JBHT) — This is one of the premier trucking companies and intermodal and contract carriage services providers in the country. But it is highly exposed to economic cycles and, therefore, requires a strong economy to maintain revenue and earnings growth.
A transportation analyst on CNBC noted Tuesday that industrial freight load numbers are down, which could negatively impact truckers.
When J B Hunt reported Q2 earnings in July, it missed on both the top and bottom lines. The company is scheduled to report Q3 earnings before the open. Analysts expect EPS of 97 cents on revenue of $1.62 billion, but J B Hunt could fall short again thanks to lower industrial load figures.
Since its reversal high at $93.50, made on April 15, JBHT stock has plummeted to the low $70s. A break at the double-bottom near $71 could lead to another sell-off and a fall to about $65.
Even if earnings meet analysts’ estimates, JBHT stock should be sold on a rise to its short-term resistance line at $75.
Sell JBHT stock short above $75 with a trading target of $65 for a potential gain of more than 13%. A stop-loss order should be entered at $77.
Short sellers should always check with their broker for any unusual restrictions on shorting this or any other stock. They should also be aware that they will be required to pay any dividends to the owner of the stock if they hold shares short through an ex-dividend date.
