Every earnings season, there are a few key reports that I focus on. It could be that an industry group is beginning to show strength and a key component is reporting that could influence the direction of the group for the entire upcoming quarter. Or it could be that a company is being traded in very positive fashion heading into its earnings report, suggesting that Wall Street is accumulating the company ahead of that report. And sometimes, you have both. That's exactly where we stand as we await JB Hunt Transport Services (JBHT) earnings report that will be out on Tuesday, after the market closes. Check out how JBHT's chart looks ahead of its report:
Over the summer months, we saw the trucking group ($DJUSTK) bottom and relative strength for the group and for one of its most visible companies, JBHT, began to surge. The DJUSTK broke out on an absolute basis in early-September and, after a month-long period of consolidation, is now poised for further gains. Trucking is just one area of transportation stocks ($TRAN), but JBHT has a chance to be an initial catalyst to jumpstart the entire industry. A rising transportation index is synonymous with big moves higher in the benchmark S&P 500. That's one of the topics I'll be discussing in a "Q3 Earnings Sneak Preview" webinar slated for 4:30pm on Monday, October 14th. The webinar is open to EVERYONE and is FREE, so if you'd like to participate, CLICK HERE for more information.
Happy trading!
Tom
