JB Hunt sell-off puts pressure on transport sector after rally
Updates prices at 2:28 p.m ET/ 1828 GMT, adds commentary
By Sinéad Carew
July 17 (Reuters) -Shares in JB Hunt Transport Services JBHT.O dropped more than 6% on Wednesday, on course to snap a five-day rally and weighing heavily on the broader transportation sector after the trucking company's quarterly report missed expectations.
JB Hunt last traded at $164.17 after closing Tuesday's session at $176, its highest level since April 16, the culmination of a rally in which it gained over 13%.
Other transport companies also lost ground and JB Hunt was the biggest drag on the bellwether Dow Jones Transport average index .DJT, which was down 1.3%.
Late on Tuesday, JB Hunt reported a 24% fall in second-quarter profit and a 7% drop in revenue, both of which missed Wall Street expectations.
Several Wall Street analysts cut their price targets for the stock after the report, while some raised their targets.
"Once again, JBHT's results reflect a freight environment that is still negatively impacted by excess capacity that is pressuring price and margins," wrote Benchmark analyst Christopher Kuhn.
Kuhn kept his buy rating and $185 price target,
and pointed to some encouraging comments from JBHT about
"more normalized seasonal patterns" and a second quarter that felt like pre-pandemic conditions.
Other delivery companies falling on Wednesday included Kirby Corp KEX.N, down 2.9%, Old Dominion ODFL.O, down about 2% and Landstar LSTR.O, off 1.7%. Fedex FDX.N was down 1% while Ryder System R.N dipped 0.8%.
JB Hunt was the second-biggest percentage decliner, behind only Uber Technologies UBER.K in the Dow transports index, which has posted five straight gains, culminating in Tuesday's close at its highest level since August.
The transports index had been rallying with the Dow Industrial Average .DJI, which on Wednesday eyed its sixth-straight daily advance and third-consecutive record-high close.
Despite Wednesday's decline, Ed Yardeni, president of Yardeni Research said he expects the Dow transport stocks to "break out over the rest of this summer and confirm the record high" in the Dow industrials.
Yardeni was citing the popular Dow Theory, which suggests that the market is on a bullish trend when both Dow indexes reach record highs.
Dow Industrials performance vs Dow Transports https://tmsnrt.rs/4cWeoCm
Reporting by Sinéad Carew. Editing by Jane Merriman and Rod Nickel
免責聲明: XM Group提供線上交易平台的登入和執行服務，允許個人查看和/或使用網站所提供的內容，但不進行任何更改或擴展其服務和訪問權限，並受以下條款與條例約束：（i）條款與條例；（ii）風險提示；（iii）完全免責聲明。網站內部所提供的所有資訊，僅限於一般資訊用途。請注意，我們所有的線上交易平台內容並不構成，也不被視為進入金融市場交易的邀約或邀請 。金融市場交易會對您的投資帶來重大風險。
所有缐上交易平台所發佈的資料，僅適用於教育/資訊類用途，不包含也不應被視爲適用於金融、投資稅或交易相關諮詢和建議，或是交易價格紀錄，或是任何金融商品或非應邀途徑的金融相關優惠的交易邀約或邀請。
本網站的所有XM和第三方所提供的内容，包括意見、新聞、研究、分析、價格其他資訊和第三方網站鏈接，皆爲‘按原狀’，並作爲一般市場評論所提供，而非投資建議。請理解和接受，所有被歸類為投資研究範圍的相關内容，並非爲了促進投資研究獨立性，而根據法律要求所編寫，而是被視爲符合營銷傳播相關法律與法規所編寫的内容。請確保您已詳讀並完全理解我們的非獨立投資研究提示和風險提示資訊，相關詳情請點擊 這裡查看。
