Yahoo Finance Is Knight-Swift Transportation Holdings Inc. (NYSE:KNX) Potentially Undervalued?
Knight-Swift Transportation Holdings Inc. (NYSE:KNX), is not the largest company out there, but it received a lot of attention from a substantial price movement on the NYSE over the last few months, increasing to US$60.31 at one point, and dropping to the lows of US$47.88. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether Knight-Swift Transportation Holdings' current trading price of US$48.14 reflective of the actual value of the mid-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Knight-Swift Transportation Holdings’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.
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 6.0% 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 $51.23, then there’s not much of an upside to gain from mispricing. In addition to this, Knight-Swift Transportation Holdings has a low beta, which suggests its share price is less volatile than the wider market.
What kind of growth will Knight-Swift Transportation Holdings generate?
Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. 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? It seems like the market has already priced in KNX’s positive outlook, 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 confidence to invest in the company should the price drop below its fair 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.
Keep in mind, when it comes to analysing a stock it's worth noting the risks involved. For example - Knight-Swift Transportation Holdings has 2 warning signs we think you should be aware of.
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.
