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Knight-Swift (KNX) Acquires Majority Ownership in Eleos

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Knight-Swift Transportation Holdings Inc. (KNX - Free Report) announced that the acquisition of majority stake in a software company, Eleos. This Greenville-based entity created a mobile driver workflow platform for trucking fleets and truck operators. The platform integrates with a wide range of telematics, fleet management and dispatch systems.

The financial terms of the deal were undisclosed. Per Knight-Swift CEO, Dave Jackson, “The Eleos team and their software platform have been invaluable in creating a driver digital experience that enables safety, productivity, and low driver turnover”.

This majority stake ownership in Eleos is expected to boost Knight-Swift’s data privacy with respect to each customer. Moreover, the company will rely on Eleos to arrange communication with their driving associates in a way that increases profits and driver satisfaction. This is likely to drive Knight-Swift’s’s top-line performance in the near future.

The Eleos deal apart, Knift-Swift was also in the news recently when it announced its fourth-quarter results. Notably, the trucking company’s earnings (excluding 10 cents from non-recurring items) of 94 cents per share surpassed the Zacks Consensus Estimate of 91 cents. The bottom line surged 70.9% year over year owing to lower costs. Moreover, adjusted operating ratio (operating expenses as a percentage of revenues) improved in all the segments (Trucking, Logistics and Intermodal).

Zacks Rank & Stocks to Consider

Knight-Swift currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader Zacks Transportation sector are FedEx Corporation (FDX - Free Report) , Kansas City Southern and Herc Holdings Inc. (HRI - Free Report) . Kansas City and FedEx carry a Zacks Rank #2 (Buy), while Herc Holdings sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Long-term expected earnings per share (three to five years) growth rate for FedEx, Kansas City and Herc Holdings is pegged at 12%, 15% and 12.6%, respectively.

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FedEx Corporation (FDX) - free report >>

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