#5 - Knight-Swift Transportation Holdings (NYSE:KNX)
Knight-Swift Transportation Holdings is a smaller, more focused version of J.B. Hunt. Where J.B. Hunt is focused on intermodal and filling all gaps in the logistics chain, Knight-Swift is a pure-play on trucking that includes intermodal. The company, formerly two independent operations, recently joined forces to form the nation’s largest trucking fleet.
What investors get along with the exposure to trucking is value. When compared to its larger competitor Knight-Swift offers a significant discount at only 21X earnings while J.B. Hunt trades closer to 30X earnings. That’s surprising news investors can capitalize on.
Bank of America calls the combined Knight-Swift Transportation holdings its top pick among the trucking carrier which makes the valuation even more surprising. According to them, Knight-Swift’s trucking fleet is the best managed, most cost-efficient in North America.
Knight-Swift also pays a dividend comparable to J.B. Hunt with a yield near 0.75% and equally safe.
About Knight-Swift Transportation
Knight-Swift Transportation Holdings Inc, together with its subsidiaries, provides freight transportation services in the United States and Mexico. The company operates through four segments: Truckload, Less-than-truckload (LTL), Logistics, and Intermodal. The Truckload segment provides transportation services, which include irregular route and dedicated, refrigerated, expedited, flatbed, and cross-border operations.
Read More - Current Price
- $53.94
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 10 Buy Ratings, 6 Hold Ratings, 1 Sell Ratings.
- Consensus Price Target
- $58.19 (7.9% Upside)
