What Happened?
Shares of semi trailers and liquid transportation container manufacturer Wabash (NYSE: WNC) jumped 2.2% in the afternoon session after its peer, J.B. Hunt Transport Services, reported strong third-quarter 2025 earnings, boosting sentiment across the transportation sector.
J.B. Hunt announced an 18% rise in earnings per share and an 8% increase in operating income for the quarter compared to the previous year. The company's earnings of $1.76 per share exceeded expectations of $1.46, while its revenue of $3.05 billion also surpassed forecasts. This strong performance from a major industry player signaled a healthy market, which in turn lifted investor confidence in related companies like Wabash. The positive report contributed to broader buying in transportation stocks.
After the initial pop the shares cooled down to $8.94, up 2.1% from previous close.
Is now the time to buy Wabash? Access our full analysis report here.
What Is The Market Telling Us
Wabash’s shares are extremely volatile and have had 36 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 28 days ago when the stock gained 4.7% on the news that investors scooped up equities, shaking off the initial concerns inferred from the Fed's dot plot, with tech stocks leading the charge.
As a reminder, the Federal Reserve cut its benchmark interest rate by 25 basis points the previous day and signaled that more reductions could come before year-end and beyond. Initially when the cut was announced and Fed Chair Powell held his press conference, there was a pullback in the market as the Fed's "dot plot" revealed that only one cut was likely for 2026. This was below the three cuts that had been priced into the markets. This was the first interest rate cut of 2025, a move investors had widely anticipated. In response to the decision, stocks rose significantly, positioning major indexes like the S&P 500 and Nasdaq to open at record levels.
The Fed's decision was influenced by signs of a weakening labor market. Lower interest rates are generally seen as positive for stocks because they reduce borrowing costs for businesses and make fixed-income investments like bonds less attractive by comparison, driving capital into the equity market. While Fed Chair Powell noted the path forward has risks, the prospect of looser monetary policy has fueled optimism on Wall Street.
Wabash is down 47.4% since the beginning of the year, and at $8.94 per share, it is trading 55.9% below its 52-week high of $20.26 from December 2024. Investors who bought $1,000 worth of Wabash’s shares 5 years ago would now be looking at an investment worth $626.58.
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