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Here's Why Investors Should Give KNX Stock a Miss Now

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Key Takeaways

  • Earnings estimates for Knight-Swift have been sharply cut for the December quarter and for 2026.
  • Knight-Swift shares lag peers, falling 5.5% amid industry weakness and dim sentiment.
  • Higher labor and fuel costs and volatile tariff conditions continue to pressure Knight-Swift.

Knight-Swift Transportation (KNX - Free Report) is facing mounting pressure from increased expenses. Tariff-related woes are also hurting the company’s prospects, making it an unattractive choice for investors’ portfolios.

KNX: Key Risks to Watch

Southward Earnings Estimate Revision: The Zacks Consensus Estimate for the December quarter’s earnings has been revised 20.8% downward in the past 60 days. Meanwhile, for 2026, the consensus mark for earnings has been revised 11.3% downward in the same time frame.

The unfavorable estimate revision indicates brokers’ lack of confidence in the stock.

Dim Price Performance:  The company’s price trend reveals that its shares have plunged 21.1% in the year-to-date period compared with the Transportation - Truck industry’s 20.3% decline.

Zacks Investment Research
Image Source: Zacks Investment Research

Weak Zacks Rank: KNX currently has a Zacks Rank #5 (Strong Sell).

Bearish Industry Rank: The industry to which Knight-Swift Transportationbelongs currently has a Zacks Industry Rank of 227 (out of 243). Such an unfavorable rank places it in the bottom 6% of Zacks Industries. Studies show that 50% of a stock’s 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 outperform a robust stock in a weak industry. Hence, reckoning the industry’s performance becomes imperative.

Headwinds: KNX is mired in significant challenges, dampening the company’s prospects. The increased expenses are weighing on the company’s bottom line. In the third quarter of 2025, the total operating expenses surged by 4.5% year over year.

Labor costs, comprising salaries and benefits, accounting for 40% of the total operating costs, increased by 4% year over year. Fuel expenses surged by 4% year over year to $221.8 million.

Moreover, companies like KNX, along with many others across the United States, are navigating a volatile macro environment marked by economic uncertainty, shifting tariff regulations and geopolitical tensions. This complexity is forcing firms to delay investments, revise forecasts and adapt quickly to remain competitive while managing rising compliance and operational risks.

Stocks to Consider

Investors interested in the Zacks Transportation sector may consider Expeditors International of Washington (EXPD - Free Report) and SkyWest (SKYW - Free Report) .

EXPD currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

EXPD has an expected earnings growth rate of 2.3% for the current year.  The company has an encouraging earnings surprise history. Its earnings outpaced the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average beat of 13.94%.

SKYW currently carries a Zacks Rank #2 (Buy).

SkyWest has an expected earnings growth rate of 33% for the current year. The company has an encouraging earnings surprise history. Its earnings topped the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average beat of 21.2%.

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