Author: INVESTOR’S BUSINESS DAILY
Source
On Friday, Knight-Swift Transport (KNX) got a rating upgrade as its Relative Strength (RS) Rating climbed from 67 to 75. The 75 RS Rating puts Knight-Swift stock in the top 25% of all stocks for price performance over the past 12 months.
X
That’s not a green light to buy the stock though. Far from it. Although it seems to be completing a cup base and trades not too far below its all-time high, the Austin, Texas, trucking firm’s fundamentals need to firm up for it to drive into the winner’s circle.
Knight-Swift Stock Has OK Composite Rating
Among its other key ratings, Knight-Swift stock has a decent 73 Composite Rating, a 61 Earnings Per Share Rating and a bullish B SMR Rating (sales + profit margins + return on equity) on an A-to-E scale with A superb and E lousy. It has a C Accumulation/Distribution Rating on an A+ to E scale, sort of a neutral rating. IBD’s A/D Rating gauges institutional buying of a stock.
Knight-Swift Transport reported lower year-over-year earnings the last three quarters and lower revenue the last two quarters. Last quarter the company posted a 46% drop in earnings to 73 cents per share vs. the same quarter a year earlier, on a 10% dip in revenue to $1.64 billion.
Looking For The Best Stocks To Buy And Watch? Start Here
Knight-Swift stock is working on a consolidation with a 64.45 buy point. See if the stock can clear the breakout price in volume at least 40% higher than normal. On Friday, Knight-Swift stock fell 0.7% to 55.96.
Knight-Swift stock holds the No. 11 rank among its peers in the Transportation-Truck industry group. Old Dominion Freight Line (ODFL) and Marten Transport (MRTN) are among the group’s highest-rated stocks.
When looking for the best stocks to buy and watch, one factor to watch closely is relative price strength.
The exclusive Relative Strength Rating from Investor’s Business Daily identifies market leadership with a 1 (worst) to 99 (best) score. The grade shows how a stock’s price behavior over the trailing 52 weeks compares to all the other stocks in our database.
Please follow James DeTar on Twitter @JimDeTar
YOU MAY ALSO LIKE:
IBD Stock Rating Upgrades: Rising Relative Strength
Why Should You Use IBD’s Relative Strength Rating?
How Relative Strength Line Can Help You Judge A Stock
Find Top Stocks Near A Buy Point With IBD Leaderboard
The post Knight-Swift Stock Surged Nearly 5% Friday; Ready For Big Run? appeared first on Investor’s Business Daily.