Why Knight-Swift Transportation Holdings Inc. (KNX) Stock Was Rallying Today

What just happened? Knight-Swift Transportation Holdings Inc. (NYSE:KNX) stock value has climbed by nearly 2.5% or (0.94 points) to $38.6 from its previous close of $37.66. Does this growth mean it the best stock to buy right now? The shares seem to have an active trading volume day with a reported 1101051 contracts so far this session. KNX shares had a relatively better volume day versus average trading capacity of 2.14 million shares, but with a 0.12 billion float and a 5.49% run over a week, it’s definitely worth keeping an eye on. The one year price forecast for KNX stock indicates that the average analyst price target is $41.88 per share. This means the stock has a potential increase of 8.5% from where the KNX share price has been trading recently which is between $36.26 and $37.72.

During the recent trading session for Knight-Swift Transportation Holdings Inc. (NYSE:KNX), the company witnessed their stock rise $1.24 over a week and surge $2.35 from the price 20 days ago. When compared to their established 52-week high of $39.26, the high they recorded in their recent session happens to be lower. Their established 52-week high was attained by the company on 07/24/19. The recent low of $23.27 stood for a -1.68% since 12/24/18, a data which is good for most investors who are looking to take advantage of the stock’s recent rise. A beta of 1.95 is also allocated to the stock. Since the beta is greater than one, it implies that the stock is more volatile than the market, a data that traders are keeping close attention to.

Looking at the current readings for Knight-Swift Transportation Holdings Inc., the two-week RSI stands at 70.02. This figure suggests that KNX stock, for now, is oversold, meaning that the shares are not stable in terms of price movement. The stochastic readings, on the other hand, based on the current KNX readings is similarly very revealing as it has a stochastic reading of 92.27% at this stage. This figure means that KNX share price today is being oversold.

Technical chart claims that Knight-Swift Transportation Holdings Inc. (KNX) would settle between $38.17/share to $38.67/share level. However, if the stock price goes below the $36.71 mark, then the market for Knight-Swift Transportation Holdings Inc. becomes much weaker. If that happens, the stock price might even plunge as low as $35.75 for its downside target. The stock is currently in the green zone of MACD, with the indicator reading 0.81. Traders are always alerted for the move of a stock above or below the zero line due to the fact that the reading is an indicator of the position of the short-term average relative to the long-term average. If the MACD is above the zero line, then the short-term average relative is above that of the long-term average, thus implying an upward momentum. Vice versa is the case if the MACD is below the zero line.

Analysts at UBS raised their recommendation on shares of KNX from Neutral to Buy in their opinion released on October 11. Susquehanna, analysts launched coverage of Knight-Swift Transportation Holdings Inc. (NYSE:KNX) stock with a Positive recommendation, according to their flash note issued to investors on September 05. Analysts at BofA/Merrill are sticking to their Buy stance. However, on July 25, they lifted price target for these shares to $43 from $38.

KNX equity has an average rating of 2.68, with the figure leaning towards a bullish end. 14 analysts who tracked the company were contacted by Reuters. Amongst them, 4 rated the stock as a hold while the remaining 10 were split even though not equally. Some analysts rate the stock as a buy or a strong buy while no rated it as a sell. 10 analysts rated Knight-Swift Transportation Holdings Inc. (NYSE:KNX) as a buy or a strong buy while not a single analyst advised that investors should desist from purchasing the stock or sell them if they already own the company’s stock.

Moving on, KNX stock price is currently trading at 16.8X forward 12-month Consensus EPS estimates, and its P/E ratio is 15.5 while for the average stock in the same group, the multiple is 24.4. Knight-Swift Transportation Holdings Inc. current P/B ratio of 1.2 means it is trading at a discount against its industry’s 2.4.