Let’s take a look at Thomson Reuter’s survey of analysts and their views on the major US truckload carriers (XTN) we’re covering in this series: JB Hunt Transport Services (JBHT), Landstar System (LSTR), Werner Enterprises (WERN), Ryder System (R), and Heartland Express (HTLD). We can conclude that analysts have an overall “hold” recommendation for these companies. Let’s look at them company-by-company.
JB Hunt Transport Services
JB Hunt Transport Services (JBHT) has a mean analyst rating of 2.09, indicating a “buy.” Of the 22 analysts covering the company, seven of them (32%) have rated it a “strong buy,” and six (27%) have rated it a “buy.” The remaining nine analysts (41%) have recommended a “hold.”
The company’s 12-month consensus price target is $113.40. This target reflects a return potential of 10% based on JBHT’s closing price of $101.20 on November 20, 2017.
Werner Enterprises (WERN) has a consensus analyst rating of 2.83, or a “hold.” Of the 18 analysts tracking the stock, two of them (11%) gave it a “strong buy,” and one gave it a “buy.” Thirteen analysts (72%) suggested a “hold” for the stock. Two analysts (11%) gave the stock a “sell” recommendation.
The company’s average 12-month mean price target is $36, indicating a 3% return potential.
Analysts have a consensus rating of 3.42 on Heartland Express (HTLD), indicating a “sell.” Of the 12 analysts covering HTLD, one of them (8%) has recommended a “strong buy.” Six analysts (50%) have recommended a “hold.” Three analysts (25%) have rated it a “sell,” while the remaining two analysts (17%) have given it a “strong sell.”
HTLD’s average consensus 12-month price target is $21.20 with a negative return potential.
Ryder System (R) has a consensus analyst rating of 2.22, implying a “buy.” Of the nine analysts covering Ryder, three of them (33%) have recommended a “strong buy.” One analyst (11%) has given it a “buy” rating, and the remaining five (56%) have given it a “hold.”
Ryder’s average consensus 12-month price target is $89, indicating a 14.7% return potential.
The last among our truckload carriers in this series is Landstar System (LSTR), with an analyst consensus rating of 2.8, or a “hold.” Of the 15 analysts covering the stock, two of them (13%) have recommended a “strong buy” for the stock, and one (7%) has given it a “buy.” Ten analysts (67%) have recommended a “hold,” and the remaining two (13%) have rated it a “sell.”
In the next and final part of this series, we’ll look at the valuations for the US truckload carriers we’re covering in this comparative 3Q17 series.