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  • Professor Andrea M. Armani, University of Southern California
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  • Justin Sigley, Ph.D., AmeriCOM
  • Professor Birgit Stiller, Max Planck Institute for the Science of Light, and Leibniz University of Hannover
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  • Mohan Wang, Ph.D., University of Oxford
  • Professor Xuchen Wang, Harbin Engineering University
  • Professor Stefan Witte, Delft University of Technology

Knight-Swift Transportation (KNX) Stock Trades Up, Here Is Why

KNX Cover Image

What Happened?

Shares of freight delivery company Knight-Swift Transportation (NYSE: KNX) jumped 5.6% in the afternoon session after Bank of America Securities upgraded its rating on the company to Buy from Neutral and raised its price target. The bank also increased its price forecast for the stock to $50 from $41. The analyst behind the upgrade noted that Knight-Swift's earnings had likely reached their lowest point and were positioned to recover due to improving spot rate dynamics.

Is now the time to buy Knight-Swift Transportation? Access our full analysis report here.

What Is The Market Telling Us

Knight-Swift Transportation’s shares are not very volatile and have only had 9 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.

The previous big move we wrote about was 6 days ago when the stock dropped 5.5% as the U.S. threatened to impose "massive increases" to tariffs on China in response to new export controls from Beijing. 

The potential countermeasures follow China's decision to place new restrictions on the export of strategic minerals and related products, including rare earths, which are critical for the defense, semiconductor, and manufacturing industries. This escalation in the economic competition between the two largest global economies is fueling investor anxiety. The new tariff threats raise concerns about disruptions to global supply chains, increased material costs for manufacturers, and a potential drag on an already sluggish economy. Industrial companies are particularly sensitive to these developments as they are often cyclical and heavily reliant on international trade.

Knight-Swift Transportation is down 11.2% since the beginning of the year, and at $46.80 per share, it is trading 21.5% below its 52-week high of $59.60 from November 2024. Investors who bought $1,000 worth of Knight-Swift Transportation’s shares 5 years ago would now be looking at an investment worth $1,147.

Today’s young investors won’t have read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next.

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