Buying an index fund makes it easier to closely match market returns. However, many of us dare to dream big returns and build our own portfolios. for example, Knight Swift Transportation Holdings (NYSE:KNX) stockholders have seen their stock gain 47% over three years, well above market returns (15%, excluding dividends).
The past week has proven lucrative for Knight-Swift Transportation Holdings investors, so let’s see if the fundamentals have driven the company’s three-year performance.
See the latest analysis from Knight-Swift Transportation Holdings
The efficient market hypothesis continues to be taught by some, but it has been proven that markets are overly reactive dynamic systems and investors are not always rational. One way to see how market sentiment has changed over time is to look at the interaction between a company’s stock price and earnings per share (EPS).
Knight-Swift Transportation Holdings was able to grow its EPS by 34% annually over three years, boosting its stock price. This EPS growth outpaces the stock’s average annual gain of 14%. Therefore, we can reasonably conclude that the market has cooled against equities. I think the low P/E ratio of 9.96 also reflects the negative sentiment towards the stock price.
The image below shows how the EPS tracked over time (click image for more details).
We know Knight-Swift Transportation Holdings has improved earnings over the last three years, but what about the future? freedom Detailed report on the balance sheet.
When looking at return on investment, it’s important to consider the following differences: Total shareholder return (TSR) and stock price returnTSR incorporates the value of spin-off or discounted capital raising along with dividends, based on the assumption that dividends are reinvested. It’s no exaggeration to say that the TSR provides a more complete picture of dividend-paying stocks. As it happens, Knight-Swift Transportation Holdings has a TSR of 51% over the past three years, beating the stock return mentioned above. Thus, the dividends paid by the company are total Shareholder return.
another point of view
Losing money is never a good thing, but Knight-Swift Transportation Holdings shareholders can rest assured that, including dividends, the 7.4% loss over the past 12 months wasn’t as bad as the market loss of about 20%. . Long-term investors shouldn’t be too upset, as they’ve been making 5% returns each year for five years. In the best-case scenario, the past year is just a passing blip on the journey to a brighter future.It’s always interesting to track stock performance over the long term. However, many other factors must be considered to better understand Knight-Swift Transportation Holdings. Note that Knight-Swift Transportation Holdings still shows. One Warning Sign in Investment Analysis what you should know…
of course Knight-Swift Transportation Holdings may not be the best stock to buySo you might want to watch this freedom Collection of growing strains.
Please note that the market returns quoted in this article reflect market-weighted average returns for stocks currently traded on US exchanges.
What are the risks and opportunities Knight Swift Transportation Holdings?
Price/earnings ratio (10x) underperforms US market (14.3x)
Revenue has grown 15.4% annually over the last 5 years
Over the next three years, revenue is projected to decline at an average annual rate of 3.2%.
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This article by Simply Wall St is general in nature. We provide comments based on historical data and analyst projections using only unbiased methodologies and our articles are not intended as financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. We aim to deliver long-term focused analysis based on fundamental data. Please note that our analysis may not take into account the latest price-sensitive company announcements or qualitative materials. Is not …