Opinions
Andrey Omelchak
Knight-Swift Transportation Holdings Inc.
KNX-N
BUY
Dec 03, 2024
$57.180
Stock price when the opinion was issued
Transportation
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TOP PICK
Stockchase Research Editor: Michael O'Reilly The trucking industry in North America sees demand at unprecedented levels. With fewer trucks on the road, due to the pandemic, recently reported revenue still grew. Operating income was up over 50%. Management has increased EPS guidance for the full year to $3.45-$3.60, compared to analyst estimates of $3.40. It trades at 14x earnings, compared to peers at over 30x. Its dividend is growing by 5% annually and is backed by a payout ratio of less than 20% of cash flow. We would buy this with a stop loss at $36, looking to achieve $56 -- upside potential over 20%. Yield 0.7% (Analysts’ price target is $55.24)
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TOP PICK
Stockchase Research Editor: Michael O’Reilly We reiterate KNX as a TOP PICK. Despite the challenges within the North American trucking industry, it continues to prove itself. Cash flow continues to grow despite reducing debt and buying back shares. It trades with a PEG ratio under 1.0 and trades under 1.5x book value. It pays a small (but growing) dividend backed by a payout ratio under 20% of cash flow. We would buy this with a stop loss at $44, looking towards $60.50 - upside potential over 21%. Yield 0.79% (Analysts’ price target is $60.24)
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TOP PICK
Stockchase Research Editor: Michael O'Reilly We again reiterate KNX as a TOP PICK. Despite the pandemic related challenges within the North American trucking industry, it continues to prove itself. Cash flow continues to grow, while the company buys back shares. It trades with a PEG ratio under 1.0 and at 1.6x book value. It pays a small (but growing) dividend backed by a payout ratio under 15% of cash flow. We continue to recommend a stop loss at $52, looking to achieve $67 - upside potential over 14%. Yield 0.69% (Analysts’ price target is $66.58)
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TOP PICK
Stockchase Research Editor: Michael O'Reilly After posting earnings that beat expectations by 12%, we again reiterate KNX as a TOP PICK. Despite the pandemic related challenges within the North American trucking industry, it continues to prove itself -- growing cash reserves and growing dividends. It trades with a PEG ratio under 1.0 and at 1.4x book value. We continue to recommend a stop loss at $52, looking to achieve $68.50 - upside potential over 23%. Yield 0.71% (Analysts’ price target is $68.42)
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PAST TOP PICK
(A Top Pick Feb 15/22, Down 5.6%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with KNX has triggered its stop at $52. To remain disciplined, we recommend covering the position at this time. This will result in a net investment gain of 9%, when combined with the previous buy recommendation and recommendation to cover half the position.
Transportation
TOP PICK
Stockchase Research Editor: Michael O'Reilly Recently reported earnings in this transportation company proved demand is on the rise. Revenues were up over 48% and margins widened, while operating income improved over 70% and net income increased 43%. We like that cash reserves increased over the quarter, while buying back shares and retiring debt. We recommend placing a stop loss at $43, looking to achieve $62.50 -- upside potential over 18%. Yield 0.95% (Analysts’ price target is $62.16)
Transportation
PAST TOP PICK
(A Top Pick Jul 21/22, Up 19.8%)Stockchase Research Editor: Michael O'Reilly
Our PAST TOP PICK with KNX has achieved its target at $62.50. To remain disciplined, we recommend covering half the position at this time and trailing up the stop (from $43) to $53. If triggered this would result in a net investment gain of 10%, when combined with this recommendation to cover half.
Transportation
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