JB Hunt Transport Services (JBHT) saw its shares drop 5.09% in pre-market trading following the release of its fourth-quarter earnings report. The transportation and logistics company reported a 2% year-over-year decline in revenue, attributed to lower pricing and volumes across its business segments. Despite beating earnings expectations with $1.90 per share (versus estimates of $1.81), the stock's sharp decline reflects investor concerns over its valuation after a 50% rally in the past three months.

Analysts from Bernstein and JP Morgan cut their price targets on JBHT, citing a cautious management outlook and limited visibility on near-term volume and pricing recovery. The stock's recent surge had left it trading at 29 times expected earnings, well above its historical average of 24 times, raising concerns of overvaluation. The pre-market selloff underscores market skepticism about the company's ability to sustain growth amid ongoing challenges in the freight industry.