J.B. Hunt

Methodology

J.B. Hunt's trucking and intermodal business generates cyclical earnings tied to freight volumes, fuel costs, and rail capacity. The company's intermodal franchise provides competitive advantages over pure truckload carriers. This calculation works best when normalizing for freight cycles—neither peak shipping volumes nor trough conditions represent sustainable earnings baselines for this transportation provider.

Methodology

J.B. Hunt's PEG ratio fluctuates significantly across freight cycles, often appearing attractive during recoveries but potentially signaling peak conditions. The company's intermodal positioning and technology investments justify premium valuations to traditional trucking. Compare to other transportation companies to assess whether J.B. Hunt's intermodal mix and operational excellence warrant valuations relative to cycle positioning.

Methodology

J.B. Hunt pays a modest dividend reflecting cyclical cash generation from freight operations. The company balances dividends with equipment investments and network expansion. PEGY provides some context, though for trucking companies, freight rate trends, capacity utilization, and diesel fuel costs matter more than dividend-adjusted metrics given business cyclicality.