Knight-Swift Transportation Holdings Inc. (KNX) is at the moment mired in a number of headwinds, which, we consider, have made it an unimpressive funding possibility.
Let’s delve deeper.
Southward Earnings Estimate Revision:The Zacks Consensus Estimate for third-quarter 2024 earnings has been revised 10.2% downward over the previous 90 days. For 2024, the consensus mark for earnings has moved 13.4% south in the identical time-frame. The bearish alterations in estimate revisions underscore a notable decline in brokers’ confidence within the inventory.
Weak Zacks Rank and Model Rating: Knight-Swift at the moment carries a Zacks Rank #5 (Sturdy Promote). The corporate’s present Value Score of C reveals its unattractiveness.
Unimpressive Worth Efficiency: KNX has declined 8.8% over the previous yr in contrast with the industry’s lack of 4%.
YTD Worth Comparability
Picture Supply: Zacks Funding Analysis
Unfavourable Earnings Shock Historical past: KNX has a disappointing earnings shock historical past. The corporate’s earnings lagged the Zacks Consensus Estimate in three of the final 4 quarters (outpaced the mark within the remaining quarter), delivering a median miss of 30.92%.
Earnings Expectations: Downbeat earnings expectations forged a shadow over an organization’s prospects. For third-quarter 2024, KNX’s earnings are anticipated to say no 14.63% yr over yr. For 2024, KNX’s earnings are anticipated to say no 36.05% yr over yr. For 2025, KNX’s earnings are anticipated to lower greater than 100% yr over yr.
Different Headwinds: Excessive prices associated to driver wages, gear, upkeep, gasoline and different bills are proscribing Knight-Swift’s bottom-line development. Throughout the first half of 2024, salaries, wages and advantages bills rose 29.4% yr over yr, whereas operations and upkeep bills climbed 35.9% yr over yr. Complete working bills elevated 21.5% yr over yr to $3.58 billion within the first half of 2024.
KNX’s monetary metrics point out that its leverage is elevated and is an enormous adverse for its shareholders. KNX’s second-quarter 2024 long-term debt interprets right into a debt-to-capitalization of 19.6%, which is decrease than the sub-industry’s 25.8%.
Shares to Contemplate
Some better-ranked shares from the Zacks Transportation sector are C.H. Robinson Worldwide (CHRW) and Wabtec Company WAB. Every inventory presently sports activities a Zacks Rank #1 (Sturdy Purchase). You’ll be able to see the complete list of today’s Zacks #1 Rank stocks here.
CHRW has a formidable earnings shock historical past. The corporate’s earnings outpaced the Zacks Consensus Estimate in three of the trailing 4 quarters (missed the mark within the remaining quarter), delivering a median shock of seven.33%.
CHRW has an anticipated earnings development price of twenty-two.42% for 2024. The Zacks Consensus Estimate for CHRW’s 2024 earnings has been revised 11.3% upward over the previous 90 days. Shares of CHRW have gained 14.3% to date this yr.
WAB has a formidable earnings shock historical past. The corporate’s earnings outpaced the Zacks Consensus Estimate in three of the trailing 4 quarters (missed the mark within the remaining quarter), delivering a median shock of 11.83%.
The Zacks Consensus Estimate for WAB’s 2024 earnings has been revised 3.3% upward over the previous 90 days. WAB has an anticipated earnings development price of 25.34% for 2024. Shares of WAB have gained 23.5% to date this yr.
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The views and opinions expressed herein are the views and opinions of the creator and don’t essentially mirror these of Nasdaq, Inc.
