J B Hunt Transport Services Inc (NASDAQ:JBHT) — This trucking company provides transportation and delivery services in the continental United States, Canada and Mexico.
Although it is exposed to economic cycles in a highly competitive industry, J B Hunt Transport Services has consistently reported above-average returns when compared with its competitors.
S&P Capital IQ has a “buy” rating on JBHT stock, and its analysts recently raised their 12-month price target by $11 to $103.
Credit Suisse Group AG (ADR) (NYSE:CS) rates JBHT stock an “outperform,” and its analysts raised their target by $7 to $99.
Both firms also raised their 2015 earnings per share (EPS) estimate recently, with Credit Suisse now expecting $3.72 and Capital IQ expecting $3.75. They note strong trucking demand and management’s ability to operate in a market where fuel costs are highly variable.
Technically, JBHT stock broke to the bottom of a bull channel in the past two months, falling from an all-time high of $93.50 in mid-April to below $83 last week. But this week, it regained the channel with a three-day rally. The channel has a low at about $84 and a high at $92.
The recent rally is supported by a possible selling climax on Friday and a turn higher by the MACD indicator.
Traders should try to buy JBHT stock under $84 with a trading target of $93 for a gain of more than 10%. As a leader in the trucking sector, J B Hunt Transport Services can also be bought as a high-quality long-term investment.
