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Here's Why Kirby (KEX) Stock Is a Compelling Portfolio Addition
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Kirby Corporation’s (KEX - Free Report) strong segmental performances, driven by increased demand, are boosting its top line. If you have not taken advantage of its share price appreciation yet, it’s time to do so.
Let’s take a look at the factors that make the stock a strong investment pick at the moment.
Robust Price Performance: A glimpse at the company’s price trend reveals that its shares have surged 25.9% year to date, surpassing the industry’s 13.8% growth.
Image Source: Zacks Investment Research
Solid Rank & VGM Score: KEX currently carries a Zacks Rank #2 (Buy) and has a VGM Score of B. Our research shows that stocks with a VGM Score of A or B, when combined with a Zacks Rank #1 (Strong Buy) or 2, offer the best investment opportunities. Thus, the company seems to be an appropriate investment proposition at the moment.
Northward Estimate Revision: The Zacks Consensus Estimate for earnings growth has been revised upward by 42.65% over the past 90 days for the current quarter. For the current year, the consensus mark for earnings growth has moved 32.80% north in the same time frame. The favorable estimate revisions indicate brokers’ confidence in the stock.
Impressive Earnings Surprise History: Kirby has an impressive earnings surprise history. Its earnings outpaced the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 5.75%.
Driving Factors: Kirby benefits from increased demand in its distribution and services segment, as well as favorable market conditions in its marine transportation unit. KEX’s marine repair, on-highway and power generation businesses support commercial and industrial markets.
Moreover, Kirby’s cash flow-generating ability is strong. In 2023, Kirby generated $540.2 million of cash from operating activities compared with $294.1 million in 2022. For 2024, net cash flow provided by operating activities is anticipated in the $600-$700 million band for 2023. Our estimate is pegged at $616.6 million.
Bullish Industry Rank: The industry to which KEX belongs currently has a Zacks Industry Rank of 77 (250 plus groups). Such a good rank places KEX in the top 31% of Zacks Industries. Studies show that 50% of a stock price movement is directly related to the performance of the industry group it belongs to.
A mediocre stock within a strong group is likely to outclass a robust stock in a weak industry. Therefore, reckoning the industry’s performance becomes imperative.
DAL has an encouraging track record with respect to earnings surprise, having surpassed the Zacks Consensus Estimate in three of the trailing four quarters and missed once. The average beat is 3.02%. DAL currently carries Zacks Rank #2. Strong air travel demand and shareholder-friendly efforts are boosting DAL’s revenues.
The Zacks Consensus Estimate for 2024 earnings has been revised 0.15% upward over the past 60 days. The company has an expected earnings growth rate of 4.96% for 2024. Shares of DAL have rallied 35.6% in the past year.
SKYW sports a Zacks Rank #1. SkyWest's fleet modernization efforts are commendable. The Zacks Consensus Estimate for SKYW’s 2024 earnings has improved 19.22% over the past 60 days. Shares of SkyWest have surged 203.5% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.
SKYW has an expected earnings growth rate of more than 100% for 2024. The company delivered a trailing four-quarter earnings surprise of 128.02%, on average.
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Here's Why Kirby (KEX) Stock Is a Compelling Portfolio Addition
Kirby Corporation’s (KEX - Free Report) strong segmental performances, driven by increased demand, are boosting its top line. If you have not taken advantage of its share price appreciation yet, it’s time to do so.
Let’s take a look at the factors that make the stock a strong investment pick at the moment.
Robust Price Performance: A glimpse at the company’s price trend reveals that its shares have surged 25.9% year to date, surpassing the industry’s 13.8% growth.
Image Source: Zacks Investment Research
Solid Rank & VGM Score: KEX currently carries a Zacks Rank #2 (Buy) and has a VGM Score of B. Our research shows that stocks with a VGM Score of A or B, when combined with a Zacks Rank #1 (Strong Buy) or 2, offer the best investment opportunities. Thus, the company seems to be an appropriate investment proposition at the moment.
Northward Estimate Revision: The Zacks Consensus Estimate for earnings growth has been revised upward by 42.65% over the past 90 days for the current quarter. For the current year, the consensus mark for earnings growth has moved 32.80% north in the same time frame. The favorable estimate revisions indicate brokers’ confidence in the stock.
Impressive Earnings Surprise History: Kirby has an impressive earnings surprise history. Its earnings outpaced the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 5.75%.
Driving Factors: Kirby benefits from increased demand in its distribution and services segment, as well as favorable market conditions in its marine transportation unit. KEX’s marine repair, on-highway and power generation businesses support commercial and industrial markets.
Moreover, Kirby’s cash flow-generating ability is strong. In 2023, Kirby generated $540.2 million of cash from operating activities compared with $294.1 million in 2022. For 2024, net cash flow provided by operating activities is anticipated in the $600-$700 million band for 2023. Our estimate is pegged at $616.6 million.
Bullish Industry Rank: The industry to which KEX belongs currently has a Zacks Industry Rank of 77 (250 plus groups). Such a good rank places KEX in the top 31% of Zacks Industries. Studies show that 50% of a stock price movement is directly related to the performance of the industry group it belongs to.
A mediocre stock within a strong group is likely to outclass a robust stock in a weak industry. Therefore, reckoning the industry’s performance becomes imperative.
Other Stocks to Consider
Investors interested in the broader Transportation sector may also consider stocks like Delta Air Lines (DAL - Free Report) and SkyWest (SKYW - Free Report) .
DAL has an encouraging track record with respect to earnings surprise, having surpassed the Zacks Consensus Estimate in three of the trailing four quarters and missed once. The average beat is 3.02%. DAL currently carries Zacks Rank #2. Strong air travel demand and shareholder-friendly efforts are boosting DAL’s revenues.
The Zacks Consensus Estimate for 2024 earnings has been revised 0.15% upward over the past 60 days. The company has an expected earnings growth rate of 4.96% for 2024. Shares of DAL have rallied 35.6% in the past year.
SKYW sports a Zacks Rank #1. SkyWest's fleet modernization efforts are commendable. The Zacks Consensus Estimate for SKYW’s 2024 earnings has improved 19.22% over the past 60 days. Shares of SkyWest have surged 203.5% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.
SKYW has an expected earnings growth rate of more than 100% for 2024. The company delivered a trailing four-quarter earnings surprise of 128.02%, on average.