Today we're going to take a look at the well-established J.B. Hunt Transport Services, Inc. (NASDAQ:JBHT). The company's stock received a lot of attention from a substantial price movement on the NASDAQGS over the last few months, increasing to US$219 at one point, and dropping to the lows of US$162. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether J.B. Hunt Transport Services' current trading price of US$165 reflective of the actual value of the large-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let's take a look at J.B. Hunt Transport Services's outlook and value based on the most recent financial data to see if there are any catalysts for a price change.

Is J.B. Hunt Transport Services Still Cheap?

The stock seems fairly valued at the moment according to our valuation model. It's trading around 11.63% above our intrinsic value, which means if you buy J.B. Hunt Transport Services today, you'd be paying a relatively fair price for it. And if you believe that the stock is really worth $147.42, then there isn't really any room for the share price grow beyond what it's currently trading. So, is there another chance to buy low in the future? Given that J.B. Hunt Transport Services's share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us an opportunity to buy later on. This is based on its high beta, which is a good indicator for share price volatility.

What does the future of J.B. Hunt Transport Services look like?

Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Although value investors would argue that it's the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. J.B. Hunt Transport Services' earnings over the next few years are expected to increase by 61%, indicating a highly optimistic future ahead. This should lead to more robust cash flows, feeding into a higher share value.

What This Means For You

Are you a shareholder? It seems like the market has already priced in JBHT's positive outlook, with shares trading around its fair value. However, there are also other important factors which we haven't considered today, such as the financial strength of the company. Have these factors changed since the last time you looked at the stock? Will you have enough confidence to invest in the company should the price drop below its fair value?

Are you a potential investor? If you've been keeping an eye on JBHT, now may not be the most advantageous time to buy, given it is trading around its fair value. However, the positive outlook is encouraging for the company, which means it's worth diving deeper into other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.

If you'd like to know more about J.B. Hunt Transport Services as a business, it's important to be aware of any risks it's facing. While conducting our analysis, we found that J.B. Hunt Transport Services has 1 warning sign and it would be unwise to ignore this.

If you are no longer interested in J.B. Hunt Transport Services, you can use our free platform to see our list of over 50 other stocks with a high growth potential.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.