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Here's Why Investors Should Bet on Kirby Stock Right Now
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Kirby’s (KEX - Free Report) robust segmental performance is bolstering the company’s top line. The shareholder-friendly approach also bodes well for the company. Owing to these tailwinds, KEX shares have performed impressively on the bourse. If you have not taken advantage of its share price appreciation yet, it’s time to do so.
Let’s delve deeper.
Factors Favoring KEX Stock
Robust Price Performance: A look at the company’s price trend reveals that its shares have risen 50.5% over the past year, surpassing the industry’s 36.7% decline.
Image Source: Zacks Investment Research
Northward Estimate Revisions: The Zacks Consensus Estimate for earnings per share has been revised upward by 1.4% over the past 60 days for the current quarter. For the current year, the consensus mark for earnings per share has moved 3% north in the same time frame. The favorable estimate revisions indicate brokers’ confidence in the stock.
Earnings Expectations: Earnings growth and stock price gains often indicate a company’s prospects. For the third quarter of 2024, KEX’s earnings are expected to grow 40% year over year. For 2024 and 2025, the company’s earnings are expected to rise 46.7% and 22.9%, year over year, respectively.
Positive Earnings Surprise History: Kirby has an encouraging earnings surprise history. The company's earnings outpaced the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 8.7%.
Solid Zacks Rank: KEX currently carries a Zacks Rank #2 (Buy).
Growth Drivers: Robust segmental performance and upbeat demand for both marine and distribution and services are boosting Kirby’s top line. Management anticipates this solid demand to continue in the second half of 2024. In the second quarter of 2024, consolidated revenues were up by 6% year over year.
KEX’s commitment to reward its shareholders through share repurchases is encouraging. During 2023, Kirby repurchased 1,485,159 shares for $112.8 million. In the second quarter of 2024, the company repurchased 372,265 shares at an average price of $117.33.
Strong liquidity is adding to another tailwind for KEX. The company exited the second quarter of 2024 with a current ratio (a measure of liquidity) of 1.70. A current ratio of greater than 1 is always desirable as it indicates that the company has enough cash to meet its short-term obligations. KEX’s times interest earned ratio (a measure of the company’s interest and debt paying ability) is 8 times compared to its industry’s 2.9 times.
Kirby has a solid cash flow-generating ability. In the first half of 2024, Kirby generated $133 million of cash from operating activities compared with $56.7 million in the year-ago period. For 2024, net cash flow provided by operating activities is anticipated to be in the $600-$700 million band. This expectation is higher than the $540.2 million generated in 2023.
Other Stocks to Consider
Investors interested in the Zacks Transportation sector may also consider C.H. Robinson Worldwide (CHRW - Free Report) and Westinghouse Air Brake Technologies (WAB - Free Report) .
The company has an impressive earnings surprise history. Its earnings outpaced the Zacks Consensus Estimate in three of the trailing four quarters and missed once, delivering an average surprise of 7.3%. Shares of CHRW have risen 29% in the past year.
WAB carries a Zacks Rank #2 at present and has an expected earnings growth rate of 26% for the current year.
The company has an encouraging track record with respect to the earnings surprise, having surpassed the Zacks Consensus Estimate in three of the trailing four quarters and missing once. The average beat is 11.8%. Shares of WAB have climbed 72.7% in the past year.
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Here's Why Investors Should Bet on Kirby Stock Right Now
Kirby’s (KEX - Free Report) robust segmental performance is bolstering the company’s top line. The shareholder-friendly approach also bodes well for the company. Owing to these tailwinds, KEX shares have performed impressively on the bourse. If you have not taken advantage of its share price appreciation yet, it’s time to do so.
Let’s delve deeper.
Factors Favoring KEX Stock
Robust Price Performance: A look at the company’s price trend reveals that its shares have risen 50.5% over the past year, surpassing the industry’s 36.7% decline.
Image Source: Zacks Investment Research
Northward Estimate Revisions: The Zacks Consensus Estimate for earnings per share has been revised upward by 1.4% over the past 60 days for the current quarter. For the current year, the consensus mark for earnings per share has moved 3% north in the same time frame. The favorable estimate revisions indicate brokers’ confidence in the stock.
Earnings Expectations: Earnings growth and stock price gains often indicate a company’s prospects. For the third quarter of 2024, KEX’s earnings are expected to grow 40% year over year. For 2024 and 2025, the company’s earnings are expected to rise 46.7% and 22.9%, year over year, respectively.
Positive Earnings Surprise History: Kirby has an encouraging earnings surprise history. The company's earnings outpaced the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 8.7%.
Solid Zacks Rank: KEX currently carries a Zacks Rank #2 (Buy).
Growth Drivers: Robust segmental performance and upbeat demand for both marine and distribution and services are boosting Kirby’s top line. Management anticipates this solid demand to continue in the second half of 2024. In the second quarter of 2024, consolidated revenues were up by 6% year over year.
KEX’s commitment to reward its shareholders through share repurchases is encouraging. During 2023, Kirby repurchased 1,485,159 shares for $112.8 million. In the second quarter of 2024, the company repurchased 372,265 shares at an average price of $117.33.
Strong liquidity is adding to another tailwind for KEX. The company exited the second quarter of 2024 with a current ratio (a measure of liquidity) of 1.70. A current ratio of greater than 1 is always desirable as it indicates that the company has enough cash to meet its short-term obligations. KEX’s times interest earned ratio (a measure of the company’s interest and debt paying ability) is 8 times compared to its industry’s 2.9 times.
Kirby has a solid cash flow-generating ability. In the first half of 2024, Kirby generated $133 million of cash from operating activities compared with $56.7 million in the year-ago period. For 2024, net cash flow provided by operating activities is anticipated to be in the $600-$700 million band. This expectation is higher than the $540.2 million generated in 2023.
Other Stocks to Consider
Investors interested in the Zacks Transportation sector may also consider C.H. Robinson Worldwide (CHRW - Free Report) and Westinghouse Air Brake Technologies (WAB - Free Report) .
C.H. Robinson Worldwide currently carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. CHRW has an expected earnings growth rate of 25.2% for the current year.
The company has an impressive earnings surprise history. Its earnings outpaced the Zacks Consensus Estimate in three of the trailing four quarters and missed once, delivering an average surprise of 7.3%. Shares of CHRW have risen 29% in the past year.
WAB carries a Zacks Rank #2 at present and has an expected earnings growth rate of 26% for the current year.
The company has an encouraging track record with respect to the earnings surprise, having surpassed the Zacks Consensus Estimate in three of the trailing four quarters and missing once. The average beat is 11.8%. Shares of WAB have climbed 72.7% in the past year.