Knight-Swift EPS Estimates Northbound: How to Play the Stock?
Knight-Swift Transportation Holdings Inc.KNX is currently mired in multiple tailwinds, which, we believe, have made it an impressive investment option. The positive sentiment surrounding Knight-Swift stock is evident from the fact that the Zacks Consensus Estimate for the third quarter of 2026 and the fourth quarter of 2026 earnings has been revised upward in the past 60 days. The consensus mark for 2026 and 2027 earnings has also been projected upward in the same time frame.
The favorable estimate revisions indicate brokers’ lack of confidence in the stock.
Image Source: Zacks Investment Research
Given this backdrop, the question now arises whether it is worth buying, holding, or selling the Knight-Swift stock at current prices. Let us delve deeper to find out.
Factors Working in Favor of KNX Stock
Knight-Swift’s acquisition strategy continues to broaden its revenue base and service network. Continued integration and network development could support revenue growth and margin expansion over time.
Knight-Swift has proactively reduced its tractor fleet to better align with demand, which helps improve asset utilization and profitability as market conditions improve. To this end, on March 16, 2026, Knight-Swift announced that it has inked a deal with TRANSTEX, a cleantech leader in emission-reducing solutions for the transportation sector. Per the deal, TRANSTEX will be purchasing FleetAero assets from Knight-Swift. The capacity discipline is a major tailwind for this trucking company.
Additionally, Knight-Swift’s shareholder-friendly initiatives in the form of dividend payments and share repurchases make it a good investment choice. As a reflection of its shareholder-friendly stance, in 2022, 2023 and 2024, KNX paid dividends of $78.30 million, $91.14 million and $104.15 million, respectively. During 2025, KNX paid dividends of $117.44 million. The company has raised its quarterly dividend annually for seven consecutive years, for a 233% overall increase.
Consistent and rising dividend paymentsmay encourage investors to stay invested, thus stemming price declines. Dividend-paying stocks provide a solid income stream and have fewer chances of experiencing wild price swings. Dividend stocks, like KNX, are safe bets for creating wealth, as the payouts generally act as a hedge against economic uncertainty like in the current scenario.
Knight-Swift Stock’s Price Performance
Shares of Knight-Swift stock have surged 68.9% in the past year, outperforming the transportation-truck industry’s 37.6% growth, as well as that of other industry players, Old Dominion Freight Line, Inc. (ODFL) and Werner Enterprises, Inc. (WERN) within the same time frame.
KNX Stock’s YTD Price Comparison
Image Source: Zacks Investment Research
Attractive Valuation Picture for KNX Stock
Knight-Swift looks cheap from a valuation standpoint. Considering the forward 12-month price-to-sales ratio (P/S-F12M), the company is trading at a discount compared to the industry.
The stock has a forward 12-month P/S-F12M of 1.26X compared with 2.12X for the industry over the past five years. These factors indicate that the stock’s valuation is attractive. KNX has a Value Score of B.
KNX P/S Ratio (Forward 12 Months) Vs. Industry
Image Source: Zacks Investment Research
Time to Buy KNX Stock
It is understood that KNX stock is currently attractively valued. Consistent shareholder-friendly initiatives boost investor confidence and positively impact the bottom line. Knight-Swift has raised its quarterly dividend annually for seven consecutive years for a 233% overall increase. Apart from being shareholder-friendly, Knight-Swift has been active on the acquisition front to strengthen its revenue stream, which is likely to drive growth and margin expansion. Knight-Swift has proactively reduced its tractor fleet to better align with demand, which helps improve asset utilization and profitability as market conditions improve.
We believe that the positives surrounding the stock (as highlighted throughout the write-up) outweigh the concerns regarding rising expenses related to salaries, wages, and benefits, equipment, maintenance, fuel, and other expenses and driver shortage issues. We, therefore, suggest investors add Knight-Swift stock to their portfolios for healthy returns. The company’s Zacks Rank #2 (Buy) further supports our thesis. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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This article originally published on Zacks Investment Research (zacks.com).
