KNX Stock Down 27.6% Y/Y: Will the Plunge Continue Throughout 2025?

Shares of Knight-Swift Transportation Holdings Inc. (KNX) have had an unimpressive run in a year. Shares of this company have plunged 27.6% in the same period, underperforming the transportation-truck industry’s 23.4% decline.

KNX Stock’s One-Year Price Comparison

Given the unimpressive price performance, let's take a deeper dive into the factors driving this transportation stock’s decline. In this write-up, we also assess whether KNX, currently carrying a Zacks Rank #4 (Sell), is likely to suffer more going forward.

High costs related to driver wages, equipment, maintenance, fuel and other expenses are restricting Knight-Swift’s bottom-line growth. During the first half of 2025, salaries, wages and benefits expenses rose 6.6% year over year. High costs naturally put pressure on margins.

KNX’s financial metrics indicate that its leverage is elevated and a massive negative for shareholders. The company’s cash and equivalents were $216.32 million at the end of second-quarter 2025, which is lower than the long-term debt level of $1.39 billion. This implies that the company does not have enough cash to meet its debt obligations.

Also, Knight-Swift’s current ratio was pegged at 0.89 at the end of the second quarter of 2025. A current ratio of less than 1 (current liabilities exceeding current assets) is not desirable as it indicates that the company may have problems meeting its short-term obligations. 

The truck industry, of which Knight-Swift is an integral part, has been persistently battling a driver shortage for several years. As old drivers are retiring, trucking companies are finding it difficult to find new drivers to take their place since the low-esteem job mostly does not appeal to the younger generation.

Given the current macro-economic environment, which is leading to declining consumer sentiment and increasing uncertainty, KNX expects its third-quarter 2025 adjusted earnings to be in the range of 36-42 cents per share. The Zacks Consensus Estimate is currently pegged at 40 cents per share.

Knight-Swift’s Estimate Revisions Continue Heading South

Driven by the aforementioned headwinds, the Zacks Consensus Estimate for the current-quarter earnings has been revised 9% downward over the past 90 days and is pegged at 40 cents per share. Meanwhile, the Zacks Consensus Estimate for 2025 earnings is pegged at $1.49 per share, indicating a 3.8% decline over the past 90 days.

Bearish Industry Rank 

The industry to which KNX belongs currently has a Zacks Industry Rank of 210 (out of 248 groups). Such a weak rank places the industry in the bottom 15% of the Zacks industries. Studies have shown that 50% of a stock price movement is directly tied to the performance of the industry group that it hails from.

In fact, a robust stock in a weak industry is likely to underperform an ordinary stock in a strong group. Therefore, considering the industry’s performance becomes imperative.

Stocks to Consider

Investors interested in the Zacks Transportation sector may also consider LATAM Airlines Group LTM and SkyWest SKYW.

LTM currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

LTM has an expected earnings growth rate of 45% for the current year. The company has a mixed earnings surprise history. Its earnings outpaced the Zacks Consensus Estimate in two of the trailing four quarters, missed once and met in the remaining one, delivering an average beat of 4.04%.

SKYW currently sports a Zacks Rank #1.

SkyWest has an expected earnings growth rate of 28.06% for the current year. The company has an encouraging earnings surprise history. Its earnings topped the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average beat of 21.92%.

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This article originally published on Zacks Investment Research (zacks.com).

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