Knight-Swift Transportation Holdings Inc. (NYSE:KNX), is not the largest company out there, but it saw a decent share price growth of 12% on the NYSE over the last few months. The company is inching closer to its yearly highs following the recent share price climb. With many analysts covering the mid-cap stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price. However, could the stock still be trading at a relatively cheap price? Let’s take a look at Knight-Swift Transportation Holdings’s outlook and value based on the most recent financial data to see if the opportunity still exists.

See our latest analysis for Knight-Swift Transportation Holdings

Is Knight-Swift Transportation Holdings Still Cheap?

Great news for investors – Knight-Swift Transportation Holdings is still trading at a fairly cheap price. Our valuation model shows that the intrinsic value for the stock is $94.22, but it is currently trading at US$57.59 on the share market, meaning that there is still an opportunity to buy now. Another thing to keep in mind is that Knight-Swift Transportation Holdings’s share price may be quite stable relative to the rest of the market, as indicated by its low beta. This means that if you believe the current share price should move towards its intrinsic value over time, a low beta could suggest it is not likely to reach that level anytime soon, and once it’s there, it may be hard to fall back down into an attractive buying range again.

What does the future of Knight-Swift Transportation Holdings look like?

Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations. Knight-Swift Transportation Holdings' earnings over the next few years are expected to double, indicating a very optimistic future ahead. This should lead to stronger cash flows, feeding into a higher share value.

What This Means For You

Are you a shareholder? Since KNX is currently undervalued, it may be a great time to increase your holdings in the stock. With a positive outlook on the horizon, it seems like this growth has not yet been fully factored into the share price. However, there are also other factors such as capital structure to consider, which could explain the current undervaluation.

Are you a potential investor? If you’ve been keeping an eye on KNX for a while, now might be the time to make a leap. Its buoyant future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy KNX. But before you make any investment decisions, consider other factors such as the strength of its balance sheet, in order to make a well-informed investment decision.

If you want to dive deeper into Knight-Swift Transportation Holdings, you'd also look into what risks it is currently facing. You'd be interested to know, that we found 3 warning signs for Knight-Swift Transportation Holdings and you'll want to know about them.

If you are no longer interested in Knight-Swift Transportation Holdings, you can use our free platform to see our list of over 50 other stocks with a high growth potential.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.