Here's Why You Should Add Kirby Stock to Your Portfolio Now

Kirby Corporation (KEX) is benefiting from multiple tailwinds, which, we believe, have made it an impressive investment option.

Against this backdrop, let’s look at the factors that make this stock an attractive pick.

What Makes Kirby an Attractive Pick?

An Outperformer: A glimpse at the company’s price trend reveals that the stock has had a solid run on the bourse over the past three months. Shares of KEX have gained 32% over the past three months, surpassing the  Zacks Transportation - Shipping industry’s 19.8% surge.

KEX Stock Three-Month Price Comparison

Solid Zacks Rank & VGM Score: Kirby currently carries a Zacks Rank #2 (Buy) and has a VGM Score of B. Our research shows that stocks with a VGM Score of A or B, when combined with a Zacks Rank #1 (Strong Buy) or 2, offer the best investment opportunities. Thus, the company seems to be an appropriate investment proposition at the moment.

Positive Earnings Surprise History: KEX has an encouraging earnings surprise history, having surpassed the Zacks Consensus Estimate in each of the trailing four quarters. The average beat is 5.02%.

Earnings Expectations: Earnings growth and stock price gains often indicate a company’s prospects. For second-quarter 2025, KEX’s earnings are expected to increase 11.19% year over year. For 2025, KEX’s earnings are expected to improve 18.38% year over year.

Bullish Industry Rank: The industry to which Kirby belongs currently has a Zacks Industry Rank of 29 (out of 245). Such a favorable rank places it in the top 12% of Zacks Industries. Studies show that 50% of a stock’s price movement is directly related to the performance of the industry group it belongs to.

A mediocre stock within a strong group is likely to outperform a robust stock in a weak industry. Reckoning the industry’s performance becomes imperative.

Growth Factors:Kirby has been witnessing favorable market conditions, including higher pricing, increased barge utilization, and improved term and spot pricing, in both the inland and coastal markets of its marine transportation segment.

Kirby has a solid balance sheet. The company ended first-quarter 2025 with cash and cash equivalents of $51 million, exceeding its current debt level of $7 million. This implies that the company has sufficient cash to meet its current debt obligations. Further, KEX’s current ratio (a measure of liquidity) at the end of first-quarter 2025 stood at 1.58, which is higher than fourth-quarter 2024 reading of 1.45 as well as the industry’s figure of 1.31. The favorable comparison with respect to the current ratio looks encouraging. This may imply that the risk of default is lower. Additionally, a current ratio greater than 1.5 is generally considered favorable for a company. 

A strong balance sheet enables the company to reward shareholders. Kirby has been consistently rewarding its shareholders through share buybacks. During 2024, KEX purchased 1.6 million shares for $174.6 million. Kirby repurchased 1,258,031 shares at an average price of $99.16, totaling $124.7 million as of April 30, 2025. Buybacks not only reduce the total outstanding share count, thereby increasing earnings per share, but also signal management's belief in the intrinsic value of the stock. Such shareholder-friendly initiatives should boost investor confidence and positively impact the bottom line.

Other Stocks to Consider

Investors interested in the Transportation sector may also consider Air Lease Corporation (AL) and SkyWest, Inc. (SKYW), both carrying a Zacks Rank #2.  You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Air Lease, headquartered in Los Angeles, CA, operates as an aircraft leasing company engaged in purchasing and leasing commercial jet aircraft to airlines worldwide.

With a globally diversified customer base of 116 airlines in 58 different countries, more than 95% of AL’s business revenues originate from airlines located outside of the United States. Steady growth in the fleet, profits earned from aircraft sales and higher end-of-lease revenues contribute to AL's top-line growth. Consistent shareholder-friendly moves, such as dividend payments, look encouraging and positively impact the company's bottom line.

AL’s earnings outpaced the Zacks Consensus Estimate in three of the trailing four quarters and missed the mark in the remaining quarter, delivering an average miss of 5.16%. The Zacks Consensus Estimate for AL’s 2025 earnings has moved up 2.4% over the past 60 days. AL’s expected earnings growth rate for 2025 is 9.6%.

SkyWest, founded in 1972, is based in St. George and operates regional jets for major U.S. airlines. SKYW is the holding company for SkyWest Airlines, SkyWest Charter and SkyWest Leasing, an aircraft leasing company.

SKYW has an impressive earnings surprise track record, having surpassed the Zacks Consensus Estimate in each of the last four quarters. The average beat was 17.1%. The Zacks Consensus Estimate for current and next-year earnings has been revised upward over the past 60 days.

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

Zacks Investment Research