Citizens says buy the dip on this trucking stock
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J.B. Hunt Transport Services is poised to bounce back, even as investors wring their hands over trucking company's rising costs, according to Citizens. The investment firm upgraded the transport stock to market outperform from market perform. It has a $300 price target on shares, suggesting roughly 27% upside from Wednesday's close. "The catalyst for our ratings upgrade is an 18.3% pullback in JBHT shares since its strong 2Q26 earnings release in July, bringing the shares to a more attractive level at 110% of the S & P 500 [price-to-earnings] on our 2027 [estimate for earnings per share (EPS)]," analyst Jeff Kauffman said Thursday in a note to clients. Shares of J.B. Hunt plunged 13% on Wednesday after the company warned investors it foresees an up to 10% quarter-over-quarter earnings decline. CFO Brad Delco attributed the hit to rising costs tied to recruiting, advertising, onboarding, training and sign-on bonuses. The stock has slid more than 11% over the past three months. JBHT 3M mountain Shares are down more than 11% over the past three months. However, Kauffman noted that J.B. Hunt's higher costs will eventually be offset by surcharge and rates, leading its shares to regain ground. "While [an increase in costs] is an industry-wide concern given the 37.3% increase in on-highway diesel prices since the July 4th weekend, it is also JBHT-specific to a modest degree as the tightest driver shortage we have been hearing about is in intermodal drayage," Kauffman wrote. "In the long run, these costs will be offset by surcharges and rates, but in the short run, it will be a 2026 EPS drag." Citizens' call falls in line with consensus on the Street. Of the 25 analysts covering J.B. Hunt, 14 have a buy or strong buy on the stock, LSEG data shows.