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Should You Buy J B Hunt Transport Services Inc (JBHT) Stock Friday?

Friday, December 08, 2023 02:56 PM | InvestorsObserver Analysts

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Should You Buy J B Hunt Transport Services Inc (JBHT) Stock Friday?

J B Hunt Transport Services Inc (JBHT) receives a weak valuation ranking of 25 from InvestorsObserver data analysis. The proprietary ranking system focuses on the underlying health of a company through analysis of its stock price, earnings, and growth rate. JBHT has a better value than 25% of stocks based on these valuation analytics. Investors primarily focused on buy-and-hold strategies will find the valuation ranking relevant to their goals when making investment decisions.

Valuation Rank - 25
JBHT gets a 25 Valuation Rank today. Find out what this means to you and get the rest of the rankings on JBHT!

Metrics Analysis

JBHT has a trailing twelve month Price to Earnings (PE) ratio of 25 which places it above the histroical average of roughly 15. JBHT is currently trading at a poor value due to investors paying more than what the stock is worth in relation to its earnings. JBHT's trailing-12-month earnings per share (EPS) of 7.42 does not justify its share price in the market. Trailing PE ratios do not factor in the company's projected growth rate, thus, some firms will have high PE ratios caused by high growth recruiting more investors even if the underlying company has produced low earnings so far.
JBHT has a 12 month forward PE to Growth (PEG) ratio of 3.24. Markets are overvaluing JBHT in relation to its projected growth as its PEG ratio is currently above the fair market value of 1. 7.42's PEG comes from its forward price to earnings ratio being divided by its growth rate. PEG ratios are one of the most used valuation metrics due to its incorporation of more company fundamentals metrics and a focus on the firm's future rather than its past.

Summary

JBHT' has a weak valuation at its current share price on account of a overvalued PEG ratio due to strong growth. JBHT's PE and PEG are worse than the market average leading to a below average valuation score. Click Here to get the full Report on J B Hunt Transport Services Inc (JBHT) stock.

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