9 Best Trucking Stocks To Buy

7. Knight-Swift Transportation Holdings Inc. (NYSE:KNX) 

Number of Hedge Fund Investors: 30

One of the Best Freight Stocks, Knight-Swift Transportation Holdings Inc. (NYSE:KNX), is the largest truckload carrier in the United States, delivering a wide range of transportation services. According to the company’s asset-based trucking business, approximately 82% of revenue comes from the U.S. Xpress deal pro forma. Full truckload (for-hire dry van, refrigerated, and dedicated contract) accounts for 69% of revenue, while less than truckload accounts for 13%. Intermodal accounts for around 6% of revenue, while truck brokerage and other asset-light logistics services account for 9%. The firm’s intermodal operations comprise drayage (regional trucking services to and from inland intermodal ramps/terminals) and the underlying movement of its shipping containers on Class I railroads. Services provided to shippers and third-party truckers, such as equipment leasing and maintenance, make up the remaining revenue.

Knight-Swift Transportation Holdings Inc. (NYSE:KNX)’s bull case is its rising less-than-truckload (LTL) business, which had a 16.7% revenue increase yearly in Q3 of 2024, due to network development with 16 new locations and the DHE purchase. Improvements in the operating ratio also indicate operational efficiency, and the logistics segment’s increased revenue per load by 13.6% YoY shows pricing power. Additionally, in Q3 of 2024, the operating cash increased by 41.46% yearly.

Knight-Swift Transportation Holdings Inc. (NYSE:KNX) price objective was increased from $62 to $68. According to the company, significantly higher less-than-truckload multiples indicate that the market is excited about opportunities beyond the current slowdown. In a research note, the analyst informs investors that Barclays’ updated upcycle analysis implies considerable profit growth potential through 2026. The company argues that an upcycle study reveals the group has a lot of volume potential, which is strengthened by share increases in addition to demand recovery.

Dmitry Balyasny’s Balyasny Asset Management was the largest stakeholder in the company from among the funds in Insider Monkey’s database. It owns 3.75 million shares worth $202.11 million as of Q3.