KNX Stock Forecast & Price Target

Knight-Swift demonstrates strong financial fundamentals, with approximately 82% of its revenue generated from its asset-based trucking business, primarily through full truckload services, which account for 69% of total revenue. The less-than-truckload (LTL) segment shows promising expansion, as evidenced by an 80 basis point outperformance in operating ratio and a 9.3% year-over-year increase in revenue per hundredweight, indicating effective volume growth in new terminals. Additionally, the company's strategic positioning to capitalize on truckload industry capacity tightness and the anticipated growth in asset-light logistics services are expected to contribute positively to future earnings.

Knight-Swift's intermodal operations are currently struggling with a 102% operating ratio, indicating inefficiencies and challenges in achieving profitability, as margins are expected to remain flat and not improve until at least 2026. The company has revised its earnings per share (EPS) guidance for Q2 downwards by approximately 40% at the midpoint, reflecting the adverse impact of macroeconomic uncertainties on financial performance. Additionally, rising fuel prices pose a risk to Knight-Swift's bottom line, potentially leading to a shift by shippers away from highway transportation, further threatening earnings stability.