Should value investors buy Knight-Swift Transportation Holdings (KNX) shares?
HAt Zacks, we focus on our proven ranking system, which emphasizes earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, which is why we constantly review the latest trends in value, growth, and momentum to find strong businesses for our readers.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven effective in all kinds of market environments. Value investors use fundamental analysis and traditional valuation metrics to find stocks they believe are undervalued by the market as a whole.
In addition to the Zacks Rankings, investors looking for stocks with specific characteristics can use our Style Scores system. Of course, value investors will be more interested in the âValueâ category of the system. Stocks with “A” ratings for value and high Zacks ranks are some of the most profitable stocks available at any given time.
Knight-Swift Transportation Holdings (KNX) is one stock that investors might notice. KNX currently has a Zacks # 2 (Buy) rating, as well as a Value rating of A. The stock trades with a P / E ratio of 11.36, which compares to its industry average of 20 , 51. Over the past 12 months, the forward P / E of KNX has reached 16.61 and as low as 11.36, with a median of 12.83.
We also note that KNX holds a PEG ratio of 0.76. This popular figure is similar to the widely used P / E ratio, but the PEG ratio also takes into account the expected growth rate of a company’s EPS. KNX’s PEG compares to its industry average PEG of 1.16. KNX’s PEG has been as high as 1.11 and as low as 0.76, with a median of 0.86, all over the past year.
Finally, it must also be recognized that KNX has a P / CF ratio of 7.36. This metric takes into account a company’s operating cash flow and can be used to find undervalued stocks based on their strong cash flow outlook. KNX’s P / CF compares to its sector average P / CF of 15.90. KNX’s P / CF has been as high as 9.05 and as low as 6.77, with a median of 7.87, all in the past year.
These are just a few of the key metrics included in Knight-Swift Transportation Holdings’ strong Value rating, but they help show that the stock is likely undervalued right now. Considering the strength of its earnings outlook, KNX looks like an impressive value stock at the moment.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.