Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.
Trade-Ideas LLC identified
) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Knight Transportation as such a stock due to the following factors:
- KNX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $26.3 million.
- KNX has traded 24,904 shares today.
- KNX is trading at a new lifetime high.
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More details on KNX:
Knight Transportation, Inc., together with its subsidiaries, operates as a short to medium-haul truckload carrier of general commodities primarily in the United States. The company operates in two segments, Asset-Based and Non-Asset-Based. The stock currently has a dividend yield of 0.8%. KNX has a PE ratio of 27.9. Currently there are 5 analysts that rate Knight Transportation a buy, 1 analyst rates it a sell, and 7 rate it a hold.
The average volume for Knight Transportation has been 746,000 shares per day over the past 30 days. Knight Transportation has a market cap of $2.5 billion and is part of the services sector and transportation industry. Shares are up 68.8% year-to-date as of the close of trading on Wednesday.
rates Knight Transportation as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, impressive record of earnings per share growth, compelling growth in net income and notable return on equity. We feel these strengths outweigh the fact that the company shows low profit margins.
Highlights from the ratings report include:
- KNX's revenue growth has slightly outpaced the industry average of 10.5%. Since the same quarter one year prior, revenues rose by 13.4%. Growth in the company's revenue appears to have helped boost the earnings per share.
- KNX's debt-to-equity ratio is very low at 0.06 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.39, which illustrates the ability to avoid short-term cash problems.
- KNIGHT TRANSPORTATION INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, KNIGHT TRANSPORTATION INC increased its bottom line by earning $0.87 versus $0.80 in the prior year. This year, the market expects an improvement in earnings ($1.17 versus $0.87).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Road & Rail industry. The net income increased by 66.7% when compared to the same quarter one year prior, rising from $15.06 million to $25.10 million.
- Powered by its strong earnings growth of 63.15% and other important driving factors, this stock has surged by 81.54% over the past year, outperforming the rise in the S&P 500 Index during the same period. Looking ahead, the stock's sharp rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
- You can view the full Knight Transportation Ratings Report.