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Knight-Swift is being aided by efficient cost-control measures and enhanced safety procedures. Evidently, total operating expenses declined 10.8% year over year in first-half 2020. We are also impressed by the company’s efforts to add shareholder value via dividends and buybacks. In February, the company’s board approved a 33.3% hike in its quarterly cash dividend to 8 cents per share (annually 32 cents). During the first six months of 2020, the company returned $27.7 million to its shareholders in the form of dividends and $34.6 million through share repurchases. Its free cash flow generation supports shareholder-friendly activities. The company generated free cash flow of $188.2 million in first-half 2020.
Its commentary that freight demand "gradually strengthened" throughout the June quarter is encouraging. We believe that owing to this improvement, the company reinstated its full-year earnings guidance. It now expects adjusted earnings per share in the $2.15-$2.30 range, the midpoint being above the midpoint of the original projection of $2-$2.15, which was withdrawn during the March-quarter conference call due to coronavirus-led uncertainty. The Zacks Consensus Estimate for current-year earnings is pegged at $2.19.
Northward Estimate Revisions
Driven by the above-mentioned tailwinds, the Zacks Consensus Estimate for current-quarter earnings has been revised 31% upward in the past 60 days. Similarly, the Zacks Consensus Estimate for 2020 has increased 32.7% in the past 60 days.
Other Stocks to Consider
Investors interested in the same industry may also consider other top-ranked stocks including Landstar System (LSTR - Free Report) , ArcBest Corporation (ARCB - Free Report) and Werner Enterprises (WERN - Free Report) . While Landstar and ArcBest sport the same Zacks Rank as Knight-Swift, Werner carries a Zacks Rank #2 at present.
Shares of Landstar, ArcBest and Werner have rallied 34.6%, 68% and 40%, respectively, in the past six months.
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
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Here's Why Knight-Swift (KNX) Jumps 45.7% in the Past 6 Months
Shares of Knight-Swift Transportation Holdings (KNX - Free Report) have gained 45.7% in the past six months compared with its industry’s 43% increase.
Let’s look into the factors responsible for the upbeat price performance of this currently Zacks Rank #1 (Strong Buy) stock. You can see the complete list of today’s Zacks #1 Rank stocks here.
Knight-Swift is being aided by efficient cost-control measures and enhanced safety procedures. Evidently, total operating expenses declined 10.8% year over year in first-half 2020. We are also impressed by the company’s efforts to add shareholder value via dividends and buybacks. In February, the company’s board approved a 33.3% hike in its quarterly cash dividend to 8 cents per share (annually 32 cents). During the first six months of 2020, the company returned $27.7 million to its shareholders in the form of dividends and $34.6 million through share repurchases. Its free cash flow generation supports shareholder-friendly activities. The company generated free cash flow of $188.2 million in first-half 2020.
Its commentary that freight demand "gradually strengthened" throughout the June quarter is encouraging. We believe that owing to this improvement, the company reinstated its full-year earnings guidance. It now expects adjusted earnings per share in the $2.15-$2.30 range, the midpoint being above the midpoint of the original projection of $2-$2.15, which was withdrawn during the March-quarter conference call due to coronavirus-led uncertainty. The Zacks Consensus Estimate for current-year earnings is pegged at $2.19.
Northward Estimate Revisions
Driven by the above-mentioned tailwinds, the Zacks Consensus Estimate for current-quarter earnings has been revised 31% upward in the past 60 days. Similarly, the Zacks Consensus Estimate for 2020 has increased 32.7% in the past 60 days.
Other Stocks to Consider
Investors interested in the same industry may also consider other top-ranked stocks including Landstar System (LSTR - Free Report) , ArcBest Corporation (ARCB - Free Report) and Werner Enterprises (WERN - Free Report) . While Landstar and ArcBest sport the same Zacks Rank as Knight-Swift, Werner carries a Zacks Rank #2 at present.
Shares of Landstar, ArcBest and Werner have rallied 34.6%, 68% and 40%, respectively, in the past six months.
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
See the 5 high-tech stocks now>>