Is Now An Opportune Moment To Examine Knight-Swift Transportation Holdings Inc. (NYSE:KNX)?

While Knight-Swift Transportation Holdings Inc. (NYSE:KNX) might not have the largest market cap around , it saw a decent share price growth of 13% on the NYSE over the last few months. The recent rally in share prices has nudged the company in the right direction, though it still falls short of its yearly peak. With many analysts covering the mid-cap stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price. However, what if the stock is still a bargain? Today we will analyse the most recent data on Knight-Swift Transportation Holdings’s outlook and valuation to see if the opportunity still exists.

See our latest analysis for Knight-Swift Transportation Holdings

What's The Opportunity In Knight-Swift Transportation Holdings?

According to our valuation model, Knight-Swift Transportation Holdings seems to be fairly priced at around 1.0% below our intrinsic value, which means if you buy Knight-Swift Transportation Holdings today, you’d be paying a fair price for it. And if you believe that the stock is really worth $52.79, then there isn’t much room for the share price grow beyond what it’s currently trading. What's more, Knight-Swift Transportation Holdings’s share price may be more stable over time (relative to the market), as indicated by its low beta.

What kind of growth will Knight-Swift Transportation Holdings generate?

Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations. With profit expected to more than double over the next couple of years, the future seems bright for Knight-Swift Transportation Holdings. It looks like higher cash flow is on the cards for the stock, which should feed into a higher share valuation.

What This Means For You

Are you a shareholder? KNX’s optimistic future growth appears to have been factored into the current share price, with shares trading around its fair value. However, there are also other important factors which we haven’t considered today, such as the track record of its management team. Have these factors changed since the last time you looked at the stock? Will you have enough conviction to buy should the price fluctuates below the true value?

Are you a potential investor? If you’ve been keeping tabs on KNX, now may not be the most advantageous time to buy, given it is trading around its fair value. However, the optimistic prospect is encouraging for the company, which means it’s worth diving deeper into other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.

In light of this, if you'd like to do more analysis on the company, it's vital to be informed of the risks involved. In terms of investment risks, we've identified 2 warning signs with Knight-Swift Transportation Holdings, and understanding them should be part of your investment process.

If you are no longer interested in Knight-Swift Transportation Holdings, you can use our free platform to see our list of over 50 other stocks with a high growth potential.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com