Truckload Carriers To Wield Substantial Pricing Power (JBHT, WERN)

Matthew S. Brooklier and Reena E. Krishnan, analysts at Piper Jaffray, recently published a note on the pricing power of truckload carriers. They noted that the companies will report high profits and stock performance. The sector is in an early stage of recovery as demand increases and inventories need restocking. Truckload capacity has been declining since 2006 and is now at a 5 year low. The recent demand has pushed up spot prices. Analysts have given an Overweight rating to J.B. Hunt Transport Services, Inc. JBHT and Werner Enterprises WERN.