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Is Knight-Swift Transportation Holdings Inc (KNX) Stock Over or Undervalued?

Wednesday, May 18, 2022 01:43 PM | InvestorsObserver Analysts

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Is Knight-Swift Transportation Holdings Inc (KNX) Stock Over or Undervalued?

Knight-Swift Transportation Holdings Inc (KNX) receives a strong valuation score of 62 from InvestorsObserver analysis. Our proprietary scoring system considers the overall health of the company by looking at the stock's price, earnings, and growth rate to determine if it represents a good value. KNX holds a better value than 62% of stocks at its current price. Investors who are focused on long-term growth through buy-and-hold investing will find the Valuation Rank especially relevant when allocating their assets.

Valuation Rank - 62
KNX gets a 62 Valuation Rank today. Find out what this means to you and get the rest of the rankings on KNX!

Metrics Analysis

KNX has a trailing twelve month Price to Earnings (PE) ratio of 9.9. The historical average of roughly 15 shows a good value for KNX stock as investors are paying lower share prices relative to the company's earnings. KNX's low trailing PE ratio shows that the firm has been trading below its fair market value recently. Its trailing 12-month earnings per share (EPS) of 4.92 more than justifies the stock's current price. However, trailing PE ratios do not factor in the company's projected growth rate, resulting in many newer firms having high PE ratios due to high growth potential enticing investors despite inadequate earnings.
KNX currently has a 12-month-forward-PE-to-Growth (PEG) ratio of 0.6. The market is currently undervaluing KNX in relation to its projected growth due to the PEG ratio being below the fair market value of 1. KNX's PEG comes from its forward price to earnings ratio being divided by its growth rate. Because PEG ratios include more fundamentals of a company's overall health with additional focus on the future, they are one of the most used valuation metrics by analysts.

Summary

All together these valuation metrics paint a pretty strong picture for KNX at its current price due to a undervalued PEG ratio despite strong growth. The PE and PEG for KNX are better than the average of the market resulting in a valuation score of 62. Click Here to get the full Report on Knight-Swift Transportation Holdings Inc (KNX) stock.

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