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 WatchDim 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 Image Source: Zacks Investment ResearchWeak 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. Image Source: Zacks Investment ResearchNegative 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%. Image Source: Zacks Investment ResearchOther 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 ConsiderInvestors 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.Higher. Faster. Sooner. Buy These Stocks NowA small number of stocks are primed for a breakout, and you have a chance to get in before they take off.At any given time, there are only 220 Zacks Rank #1 Strong Buys. On average, this list more than doubles the S&P 500. We’ve combed through the latest Strong Buys and selected 7 compelling companies likely to jump sooner and climb higher than any other stock you could buy this month.You'll learn everything you need to know about these exciting trades in our brand-new Special Report, 7 Best Stocks for the Next 30 Days.Download the report free now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Ryanair Holdings PLC (RYAAY): Free Stock Analysis Report J.B. Hunt Transport Services, Inc. (JBHT): Free Stock Analysis Report LATAM Airlines Group S.A. (LTM): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks