Should Value Investors Buy Knight-Swift Transportation Holdings (KNX) Stock?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to...
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company value investors might notice is Knight-Swift Transportation Holdings (KNX). KNX is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 11.36, which compares to its industry's average of 20.51. Over the last 12 months, KNX's Forward P/E has been as high as 16.61 and as low as 11.36, with a median of 12.83.
We also note that KNX holds a PEG ratio of 0.76. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. KNX's PEG compares to its industry's average PEG of 1.16. KNX's PEG has been as high as 1.11 and as low as 0.76, with a median of 0.86, all within the past year.
Finally, we should also recognize that KNX has a P/CF ratio of 7.36. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. KNX's P/CF compares to its industry's average P/CF of 15.90. KNX's P/CF has been as high as 9.05 and as low as 6.77, with a median of 7.87, all within the past year.
These are only a few of the key metrics included in Knight-Swift Transportation Holdings's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, KNX looks like an impressive value stock at the moment.
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KnightSwift Transportation Holdings Inc. (KNX): Free Stock Analysis Report
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