DarvasBoxAI
Momentum Trader, Darvas/TheStrat Systems, 30 Years’ Experience
Legitimate trucking companies like J.B. Hunt should start making a lot of money as enforcement pushes noncompliant drivers off the road. Per a quoted trucking post, DOT emergency-closed 110 CDL schools tied to 5,000 drivers who failed roadside English checks, with 160-plus more at risk, and trucks abandoned by drivers are being impounded. x.com
J.B. Hunt, a best-in-class trucking business, appears to have run out of the pricing power needed to pass high diesel costs on to customers. It announced an earnings drop of 5% to 10% because of rising fuel costs. Diesel is approaching $7 a gallon, which is more bearish than the recent move in yields, with consumers and businesses paying roughly $700M more a day for fuel than a year ago. x.com
Trucking and freight brokerage stocks look extended and expensive, pricing in an improbably steep earnings ramp. CDL licensing is tightening capacity and AI capex buildouts help areas such as flatbed, but J.B. Hunt trades near 30x next year's earnings. XPO is the most egregious, as less-than-truckload carriers will lag the upcycle while adding capacity. Landstar faces weak brokerage margins and platform pressure versus other public brokerages, before AI's effect on take rates. x.com
