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KnightSwift Transportation (KNX - Free Report) is a Zacks Rank #5 (Strong Sell) as earnings estimates have tracked lower due following a recent earnings miss. The company is in trucking and transportation industry and could be interesting to some investors at these levels. This article will look at why this stock is a Zacks Rank #5 (Strong Sell) as it is the Bear of the Day.
Description
Knight-Swift Transportation Holdings, Inc. engages in the provision of multiple truckload transportation and logistics services. It operates through the following business segments: Trucking, Logistics, and Intermodal. The Trucking segment comprises irregular route and dedicated, refrigerated, expedited, flatbed, and cross-border operations. The Logistics segment includes brokerage and other freight management services. The Intermodal segment consists of revenue generated by moving freight over the rail in the containers and other trailing equipment, combined with the revenue for drayage to transport loads between the railheads and customer locations. The company was founded in 1966 and is headquartered in Phoenix, AZ.
Earnings History
When I look at a stock, the first thing I do is look to see if the company is beating the number. This tells me right away where the market’s expectations have been for the company and how management has communicated to the market. A stock that consistently beats has management communicating expectations to Wall Street that can be achieved. That is what you want to see.
In the case of KnightSwift Transportation, I see one beat of the Zacks Consensus Estimate and three misses. This alone does not make the stock a Zacks Rank #1 (Strong Buy) and it doesn’t make it a Zacks Rank #5 (Strong Sell) either.
The Zacks Rank does care about the earnings history, but it is much more heavily influenced by the movement of earnings estimates.
Earnings Estimates
The Zacks Rank tells us which stocks are seeing earnings estimates move higher or in this case lower. For KNX I see annual estimates moving lower of late.
The current year (2024) consensus number moved lower from $3.10 to $2.52 over the last 60 days.
The next year moved from $4.44 to $4.25 over the last 60 days.
Negative movement in earnings estimates like that is why this stock is a Zacks Rank #5 (Strong Sell).
It should be noted that a lot of stocks in the Zacks universe are seeing negative earnings estimate revisions. That means that the stocks that are seeing small but negative earnings estimate revisions are falling to a Zacks Rank #5 (Strong Sell).
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Bear Of The Day: KnightSwift Transportation (KNX)
KnightSwift Transportation (KNX - Free Report) is a Zacks Rank #5 (Strong Sell) as earnings estimates have tracked lower due following a recent earnings miss. The company is in trucking and transportation industry and could be interesting to some investors at these levels. This article will look at why this stock is a Zacks Rank #5 (Strong Sell) as it is the Bear of the Day.
Description
Knight-Swift Transportation Holdings, Inc. engages in the provision of multiple truckload transportation and logistics services. It operates through the following business segments: Trucking, Logistics, and Intermodal. The Trucking segment comprises irregular route and dedicated, refrigerated, expedited, flatbed, and cross-border operations. The Logistics segment includes brokerage and other freight management services. The Intermodal segment consists of revenue generated by moving freight over the rail in the containers and other trailing equipment, combined with the revenue for drayage to transport loads between the railheads and customer locations. The company was founded in 1966 and is headquartered in Phoenix, AZ.
Earnings History
When I look at a stock, the first thing I do is look to see if the company is beating the number. This tells me right away where the market’s expectations have been for the company and how management has communicated to the market. A stock that consistently beats has management communicating expectations to Wall Street that can be achieved. That is what you want to see.
In the case of KnightSwift Transportation, I see one beat of the Zacks Consensus Estimate and three misses. This alone does not make the stock a Zacks Rank #1 (Strong Buy) and it doesn’t make it a Zacks Rank #5 (Strong Sell) either.
The Zacks Rank does care about the earnings history, but it is much more heavily influenced by the movement of earnings estimates.
Earnings Estimates
The Zacks Rank tells us which stocks are seeing earnings estimates move higher or in this case lower. For KNX I see annual estimates moving lower of late.
The current year (2024) consensus number moved lower from $3.10 to $2.52 over the last 60 days.
The next year moved from $4.44 to $4.25 over the last 60 days.
Negative movement in earnings estimates like that is why this stock is a Zacks Rank #5 (Strong Sell).
It should be noted that a lot of stocks in the Zacks universe are seeing negative earnings estimate revisions. That means that the stocks that are seeing small but negative earnings estimate revisions are falling to a Zacks Rank #5 (Strong Sell).