
Hub Group (HUBG) Stock Forecast & Price Target
Hub Group (HUBG) Analyst Ratings
Bulls say
Hub Group has demonstrated solid financial performance with significant improvements in warehouse utilization, which rose by 600 basis points, positioning the company for enhanced margins as remaining third-party warehouses transition within the third quarter. The company's intermodal volumes increased by 2% year-over-year despite challenging market conditions, while operating margins improved by 30 basis points thanks to efficient network management and a successful in-sourcing strategy that reduced empty positioning costs by 43%. Management's expectation of sequential margin expansion in the second half of the year, driven by new business acquisitions and ongoing cost efficiencies, underlines a positive outlook for Hub Group's financial stability and growth potential.
Bears say
Hub Group's stock outlook remains negative due to significant weakness in its brokerage business, which experienced a 5% decline in load count and a 9% decrease in revenue per load, exacerbated by a softened dry van market. Additionally, the logistics segment reported a 12% year-over-year revenue decline and a 13% drop in operating income, indicating ongoing challenges within its operations. The intermodal transportation solutions segment also faced a 6% revenue decline, driven by lower pricing and lost dedicated sites, contributing to a downward revision of third-quarter earnings per share estimates.
This aggregate rating is based on analysts' research of Hub Group and is not a guaranteed prediction by Public.com or investment advice.
Hub Group (HUBG) Analyst Forecast & Price Prediction
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