Is J.B. Hunt Transport Services, Inc. overvalued or undervalued?

As of 29 July 2024, the valuation grade for J.B. Hunt Transport Services, Inc. has moved from expensive to fair. The company is currently fairly valued based on its financial metrics. The P/E ratio stands at 40, which is higher than its peer Old Dominion Freight Line, Inc. with a P/E of 28.83. Additionally, J.B. Hunt's EV to EBITDA ratio is 15.16, compared to Old Dominion's 17.68, indicating a more favorable valuation in this regard.
In terms of key ratios, J.B. Hunt has a Price to Book Value of 5.83 and an EV to Sales ratio of 1.99. The company's ROCE is 15.35% and ROE is 14.51%, which reflect solid profitability. While J.B. Hunt has underperformed the S&P 500 over the past year with a return of -8.64% compared to the index's 10.26%, its recent performance has shown some resilience with a 1-week return of 0.14% against a slight decline in the S&P 500. Overall, J.B. Hunt appears to be fairly valued in the current market context.