Knight-Swift Trucks in Big Money

And the largest carrier in the truckload sector could jump more due to strong earnings and forward guidance. But another likely reason is Big Money lifting the stock.

Big Money Likes Knight-Swift

So, what’s Big Money? Said simply, that’s when a stock goes up in price alongside chunky volumes. It’s indicative of institutions betting on the shares.

Smart money managers are always looking for the next hot stock. And Knight-Swift has many fundamental qualities that are attractive.

This sets up well for the stock going forward. But how the shares have been trading points to more upside. As I’ll show you, the Big Money has been consistent in the shares.

You see, fund managers are always looking to bet on the next outlier stocks…the best in class. They spend countless hours sizing up companies, reading reports, speaking to analysts…you name it. When they find a company firing on all cylinders, they pounce in a big way.

That’s why I’ve learned how critical it is to gauge Big Money demand for shares. To show you what I mean, have a look at the Big Money signals KNX has made over the last year.

The last few weeks have seen Big Money activity too. Each green bar signals big trading volumes as the stock ramped in price:

Source: www.mapsignals.com

In the last year, the stock attracted nine Big Money buy signals. Generally speaking, recent green bars could mean more upside is ahead.

Now, let’s check out the technical action grabbing my attention:

• 1-month outperformance vs. Industrials Select Sector SPDR ETF (+4.9% vs. XLI)

Outperformance is important for leading stocks.

Knight-Swift Fundamental Analysis

Next, it’s a good idea to check under the hood. Meaning, I want to make sure the fundamental story is strong too. As you can see, Knight-Swift has had double-digit earnings growth and strong profits. Take a look:

• 3-year EPS growth rate (+31.9%)
• Profit margin (+12.4%)

Source: FactSet

Marrying great fundamentals with technically superior stocks is a winning recipe over the long-term.

In fact, KNX has been a top-rated stock at my research firm, MAPsignals, for years. That means the stock has had buy pressure, strong technicals, and growing fundamentals. We have a ranking process that showcases stocks like this on a weekly basis.

KNX has a lot of qualities that are attracting Big Money. It’s made the Top 20 report 25 times since 2005, with its first appearance on 11/07/2005…and gaining 247.2% since. The blue bars below show when Knight-Swift was a top pick:

Source: www.mapsignals.com

It’s been a top stock in the industrials sector according to the MAPsignals process. I wouldn’t be surprised if KNX makes additional appearances in the years to come. Let’s tie this all together.

Knight-Swift Price Prediction

The Knight-Swift rally could have further to go. Big Money buying in the shares is signaling to take notice. Shares could be positioned for further upside, plus it pays a current dividend yield of nearly 0.9%. Given the historical gains in share price and strong fundamentals, this stock could be worth a spot in a diversified portfolio.

Disclosure: the author holds no positions in KNX at the time of publication.

Learn more about the MAPsignals process here.

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