Knight-Swift Transportation (KNX): A Value Play in a Turbulent Freight Market?
NEW YORK – The fourth quarter of 2025 proved a difficult environment for traditional value investors, as detailed in Pzena Investment Management's recently released commentary for its Focused Value Strategy. The firm's strategy, which returned a net 2.5%, lagged behind the Russell 1000® Value Index's 3.8% gain, a performance gap attributed to the relentless momentum in artificial intelligence and mega-cap technology stocks.
Despite the headwinds, Pzena remains steadfast in its philosophy, arguing that the current market has created compelling valuation disparities. "We continue to see a fertile landscape for long-term value investors," the letter noted, pointing to select holdings that may be overlooked in the tech-driven rally. Among them is Knight-Swift Transportation Holdings Inc. (NYSE: KNX), a key player in the North American freight sector.
Knight-Swift, formed from the merger of two trucking giants, operates across Truckload, Less-than-Truckload (LTL), Logistics, and Intermodal segments. Its performance has been mixed: shares gained a modest 1.94% over the past month but are down 1.13% over the trailing 52 weeks. The stock closed at $55.10 on January 30, 2026, giving the company a market cap of approximately $8.95 billion.
Pzena's letter highlighted the company as an example of a fundamentally sound business trading at a reasonable valuation. The firm's conviction is echoed by a slight increase in institutional interest; hedge fund holdings in KNX rose to 44 portfolios at the end of Q3 2025, up from 43 the prior quarter, according to data from Insider Monkey.
Analyst Perspective & Market Context
The freight industry is at a crossroads, grappling with softer demand and fluctuating rates after the pandemic-driven boom. However, long-term trends like supply chain reconfiguration and potential infrastructure spending could benefit established, diversified carriers like Knight-Swift. Its scale and multi-segment approach provide a buffer against volatility in any single market niche.
Reader Reactions
Michael R., Portfolio Manager in Chicago: "This is a classic contrarian pick. The market is bored with freight, which is exactly when you find value. KNX's diversified model and strong balance sheet position it well for the next cycle. It's not sexy, but it's solid."
Sarah Chen, Freight Analyst in Atlanta: "The data is lukewarm. A single month of minor gains doesn't reverse a year of decline. While the hedge fund interest is a note, I'd need to see a clearer inflection point in freight volumes and pricing power before getting excited."
David "Bull" Thompson, Independent Trader (via social media): "Are you serious? Recommending a trucking stock in the age of AI? This is exactly why 'value' strategies keep underperforming. Money is flowing into the future, not into diesel engines and highway congestion. This is a value trap, not a value play."
Linda Garcia, Long-term Investor in Florida: "I appreciate the analysis. It's a reminder that not all investing is about chasing the next big thing. Companies that move the actual economy, like KNX, often get overlooked and can provide steady returns when the tech bubble eventually deflates."
Pzena's full commentary, including its top holdings for 2025, is available for download. It's worth noting that Knight-Swift did not make Insider Monkey's list of the 30 Most Popular Stocks Among Hedge Funds, a list currently dominated by tech names.
Disclosure: None. This article is adapted from original reporting by Insider Monkey.