Supply chain disruptions worldwide are driving the demand for trucking, primarily for intermodal freight transportation. Therefore, we think prominent trucking companies J.B. Hunt (JBHT) and C.H. Robinson (CHRW) should benefit. But which of these stocks is a better buy now? Read more to find out.J.B. Hunt Transport Services, Inc. (JBHT) in Lowell, Ark., and C.H. Robinson Worldwide, Inc. (CHRW), which is headquartered in Eden Prairie, Minn., are two prominent players in the trucking freight industry. JBHT is a surface transportation, delivery, and logistics company that operates through the following segments: Intermodal; Dedicated Contract Services; Integrated Capacity Solutions; Final Mile Services; and Truckload. It transports automotive parts, department store merchandise, paper, and wood products, food and beverages, plastics, chemicals, and manufacturing materials and supplies. CHRW provides freight transportation services, customs broker services, logistics solutions, and related services to companies in various industries worldwide. In addition, the company buys, sells, and markets fresh produce, including fresh fruits, vegetables, and other perishable items.
The resumption of industrial activities and easing of travel restrictions have helped the trucking industry rebound strongly from its pandemic lows this year. With rising consumer demand as the holiday season approaches, the heightened need for the surface transportation of raw materials should benefit the industry. Furthermore, amid ongoing supply chain constraints worldwide, trucking companies' intermodal services and logistics solutions should be in high demand. The global general freight trucking market is expected to grow at an 8% CAGR to $997.35 billion by 2028. So, both JBHT and CHRW should benefit.
While CHRW has gained 4.6% in price year-to-date, JBHT has surged 44.9%. JBHT is a clear winner with 17.2% gains versus CHRW’s 4.8% returns in terms of their past six months’ performance. But which of these stocks is a better pick now? Let’s find out.