J.B. Hunt's Intermodal Growth Shows Promise Despite Lagging 'Big Three' Ports: Analyst

Core Viewpoint - J.B. Hunt Transport Services, Inc. is experiencing slower intermodal growth compared to the "Big Three" West Coast ports, but analysts maintain a positive outlook for future growth, particularly towards the end of 2024 and into 2025 [1][2][5]. Group 1: Company Performance - J.B. Hunt's intermodal growth was reported at 5% in Q3 2024, driven by a 7% increase in transcontinental traffic and double-digit growth in Southern California [8]. - Despite the growth, there was a 6% month-over-month decline in combined data, which is below the five-year average [9]. - The company's intermodal growth lags behind the average 27.5% increase seen by the "Big Three" ports [1]. Group 2: Market Conditions - The Big Three West Coast Ports (L.A., Long Beach, and Oakland) reported a 20% year-over-year increase in traffic for November 2024, surpassing the pre-pandemic five-year average of 2% [6]. - There is potential for J.B. Hunt's performance to improve if more ocean freight is diverted to the West Coast due to ongoing contract uncertainties on the East Coast [5]. - The shift towards domestic intermodal is showing positive signs, indicating potential for increased imports moving out of West Coast warehouses [5]. Group 3: Analyst Insights - Goldman Sachs analyst Jordan Alliger reiterated a Buy rating on J.B. Hunt, suggesting a favorable outlook for the company [3]. - The analyst predicts that growth for J.B. Hunt could accelerate towards the end of 2024 and into 2025, ahead of any potential tariffs [2].