Jim Cramer on Hub Group (HUBG): “Got to Wait Till Oil Calms Down”

On the September 16 episode of Mad Money, Jim Cramer was asked about Hub Group, Inc. (NASDAQ:HUBG) during the lightning round. He acknowledged that buying the stock at the moment would be difficult. Cramer explained that his charitable trust had a small position in a trucking company, but he expected rough sailing in the near future.

Hub Group, Inc. operates across intermodal transport, truck brokerage, and supply chain management, boasting a large operational scale. The company reported estimated first-half consolidated operating revenue between $1.70 billion and $1.80 billion, with full-year sales expected to land between $3.6 billion and $3.8 billion. Hub Group holds roughly $132 million in cash and cash equivalents, with capital expenditures projected to range between $40 million and $50 million for the year.

The firm's leadership is investing in proprietary technology platforms and network enhancements to improve operational efficiency and customer retention. Despite its strong market position, Hub Group faces significant challenges due to an extensive financial restatement of prior periods from accounting issues. This delay in filing its 2025 annual report and 2026 quarterly reports, along with the issuance of a Nasdaq Staff Delisting Determination, has put the company under considerable pressure.

Management expects a first-half operating loss due to higher fuel, rail, and drayage costs, coupled with expensive restatement advisory fees. Energy market instability and weak earnings from industry leaders like J.B. Hunt are also contributing to the pressure on Hub Group's margins. Insider Monkey data shows that 30 hedge funds are now holding stakes in Hub Group, up from 23 in the previous period, with Broad Bay Capital and Moore Global Investments being the most prominent investors.

Short interest currently sits at 8.29% of the public float, indicating a moderate bearish sentiment. Cramer emphasized that patience is key when navigating the trucking sector, as resolving the current accounting overhang and allowing energy markets to stabilize are crucial before considering the recent pullback as a buying opportunity.

While acknowledging Hub Group's potential as an investment, Cramer suggested that AI stocks might offer greater upside potential with less downside risk.