Valuation & Quant Scores in Focus For J.B. Hunt Transport Services, Inc. (NasdaqGS:JBHT)

Checking in on some valuation rankings, J.B. Hunt Transport Services, Inc. (NasdaqGS:JBHT) has a Value Composite score of 55. Developed by James O’Shaughnessy, the VC score uses five valuation ratios. These ratios are price to earnings, price to cash flow, EBITDA to EV, price to book value, and price to sales. The VC is displayed as a number between 1 and 100. In general, a company with a score closer to 0 would be seen as undervalued, and a score closer to 100 would indicate an overvalued company. Adding a sixth ratio, shareholder yield, we can view the Value Composite 2 score which is currently sitting at 50. 

There is no shortage of financial news and opinions as we live in the age of the 24 hour news cycle. Headlines and expert opinions seem to be around every corner when dealing with the stock market. Trying to keep up with all the swirling news can make ones head spin. Even though there may be some significant news mixed in, a lot of the headlines may not be worth paying much attention to. Figuring out what information is useful may take some time for the investor to figure out. Once the filter is in place, investors may find it much easier to focus on the important data. Making investment decisions solely based on news headlines may end up causing the portfolio to suffer down the line. 

In taking a look at some other notable technicals, J.B. Hunt Transport Services, Inc. (NasdaqGS:JBHT)’s ROIC is 0.182125. The ROIC 5 year average is 0.225719 and the ROIC Quality ratio is 4.812645. ROIC is a profitability ratio that measures the return that an investment generates for those providing capital. ROIC helps show how efficient a firm is at turning capital into profits.

We also note that J.B. Hunt Transport Services, Inc. (NasdaqGS:JBHT) has a Shareholder Yield of 0.013811 and a Shareholder Yield (Mebane Faber) of 0.01303. The first value is calculated by adding the dividend yield to the percentage of repurchased shares. The second value adds in the net debt repaid yield to the calculation. Shareholder yield has the ability to show how much money the firm is giving back to shareholders via a few different avenues. Companies may issue new shares and buy back their own shares. This may occur at the same time. Investors may also use shareholder yield to gauge a baseline rate of return.

J.B. Hunt Transport Services, Inc. (NasdaqGS:JBHT) has a current MF Rank of 5953. Developed by hedge fund manager Joel Greenblatt, the intention of the formula is to spot high quality companies that are trading at an attractive price. The formula uses ROIC and earnings yield ratios to find quality, undervalued stocks. In general, companies with the lowest combined rank may be the higher quality picks.

We can now take a quick look at some historical stock price index data. J.B. Hunt Transport Services, Inc. (NasdaqGS:JBHT) presently has a 10 month price index of 0.96140. The price index is calculated by dividing the current share price by the share price ten months ago. A ratio over one indicates an increase in share price over the period. A ratio lower than one shows that the price has decreased over that time period. Looking at some alternate time periods, the 12 month price index is 0.96929, the 24 month is 1.14311, and the 36 month is 1.50979. Narrowing in a bit closer, the 5 month price index is 0.93173, the 3 month is 1.04921, and the 1 month is currently 1.13941.

High yielding stocks can be very tempting for investors. Trying to maximize the return on every dollar invested is a goal of many individuals. What investors have to remember is that the stocks that promise the highest return potential may also be some of the riskiest to own. Because past performance can’t guarantee future results, investors may need to do some extra research when adding high risk stocks to the portfolio. Most investors are always on the lookout to spot that next big stock winner before everyone else. Making sure that they are not adding too much extra risk when doing this may be the key to keeping the portfolio balanced. 

The C-Score is a system developed by James Montier that helps determine whether a company is involved in falsifying their financial statements.  The C-Score is calculated by a variety of items, including a growing difference in net income verse cash flow, increasing days outstanding, growing days sales of inventory, increasing assets to sales, declines in depreciation, and high total asset growth.  The C-Score of J.B. Hunt Transport Services, Inc. (NasdaqGS:JBHT) is 2.00000.  The score ranges on a scale of -1 to 6.  If the score is -1, then there is not enough information to determine the C-Score.  If the number is at zero (0) then there is no evidence of fraudulent book cooking, whereas a number of 6 indicates a high likelihood of fraudulent activity. The C-Score assists investors in assessing the likelihood of a company cheating in the books.

Volatility

Watching some historical volatility numbers on shares of J.B. Hunt Transport Services, Inc. (NasdaqGS:JBHT), we can see that the 12 month volatility is presently 24.294900. The 6 month volatility is 26.691200, and the 3 month is spotted at 30.634600. Following volatility data can help measure how much the stock price has fluctuated over the specified time period. Although past volatility action may help project future stock volatility, it may also be vastly different when taking into account other factors that may be driving price action during the measured time period. 

Piotroski F-Score

At the time of writing, J.B. Hunt Transport Services, Inc. (NasdaqGS:JBHT) has a Piotroski F-Score of 4. The F-Score may help discover companies with strengthening balance sheets. The score may also be used to spot the weak performers. Joseph Piotroski developed the F-Score which employs nine different variables based on the company financial statement. A single point is assigned to each test that a stock passes. Typically, a stock scoring an 8 or 9 would be seen as strong. On the other end, a stock with a score from 0-2 would be viewed as weak.

Stock market investing can sometimes become highly emotional. Being able to leave emotions out of the major investing decisions might be tricky, but it may end up being a portfolio savior down the road. Nobody wants to see a thoroughly researched stock pick underperform. Holding onto the hope that a certain stock has to bounce back may lead to later problems. Of course, it can be very hard for humans to admit when a mistake was made. Finding the ability to detach from a position can be tough. Humans make mistakes, but being able to learn from those mistakes moving forward can help with achieving long term success in the market.

P/B

J.B. Hunt Transport Services, Inc. (NasdaqGS:JBHT) has a Price to Book ratio of 5.876356. This ratio is calculated by dividing the current share price by the book value per share. Investors may use Price to Book to display how the market portrays the value of a stock. Checking in on some other ratios, the company has a Price to Cash Flow ratio of , and a current Price to Earnings ratio of 25.222346. The P/E ratio is one of the most common ratios used for figuring out whether a company is overvalued or undervalued.