Here's Why You Should Invest in Kirby (KEX) Stock Right Now
Kirby Corporation KEX performed well in the past year and has the potential to sustain the momentum in the future. If you have not taken advantage of its share price appreciation yet, it’s time to do so.
Let’s take a look at the factors that make the stock a strong investment pick at the moment.
An Outperformer: A glimpse at the company’s price trend reveals that the stock has had an impressive run on the bourse in the past year. Shares of KEX have gained 22% over the past year.
Image Source: Zacks Investment Research
Solid Zacks Rank: Kirby presently carries a Zacks Rank #2 (Buy). Our research shows that stocks with a Zacks Rank #1 (Strong Buy) or 2 offer the best investment opportunities. Thus, the company is a compelling investment proposition at the moment.
Northward Estimate Revisions: The positivity surrounding the stock is evident from the northward movement of estimate revisions. The Zacks Consensus Estimate for first-quarter 2024 earnings has moved up 5.1% in the past 90 days. For 2024, the Zacks Consensus Estimate has remained unchanged in the past 90 days.
Positive Earnings Surprise History: Kirby has an impressive earnings surprise history. The company's earnings outpaced the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 6.68%.
Earnings Expectations: Earnings growth and stock price gains often indicate a company’s prospects. For first-quarter 2024, KEX’s earnings are expected to grow 51.47% year over year. For 2024, KEX’s earnings are expected to grow 36.08% year over year.
Driving Factors: Improved guidance for 2023 looks encouraging and raises optimism about the stock. For 2023, KEX now anticipates net cash generated from operating activities between $475 million and $525 million (earlier view: $500 million and $580 million).
Strong segmental performances are boosting Kirby’s top line. The distribution and services segment is benefiting from increased demand for products and services. Improved performance in the oil and gas, as well as commercial and industrial markets, are driving segmental revenues. Favorable market conditions, such as high refinery and petrochemical plant utilization and increased volumes from new petrochemical plants in inland marine (within the marine transportation unit), are expected to boost performance of the marine transportation unit.
Other Stocks to Consider
Some other top-ranked stocks from the Zacks Transportation sector are Westinghouse Air Brake Technologies Corporation, operating as Wabtec Corporation WAB and GATX Corporation GATX. Each stock presently carries a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Wabtec has an expected earnings growth rate of 22.43% for the current year. WAB delivered a trailing four-quarter earnings surprise of 7.11%, on average.
The Zacks Consensus Estimate for WAB’s current-year earnings has improved 4.9% over the past 90 days. Shares of WAB have gained 22.1% in the past year.
GATX has an expected earnings growth rate of 14.33% for the current year. GATX delivered a trailing four-quarter earnings surprise of 16.49%, on average.
The Zacks Consensus Estimate for GATX’s current-year earnings has remained unchanged over the past 90 days. Shares of GATX have gained 6.6% in the past year.
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Kirby Corporation (KEX) : Free Stock Analysis Report
Westinghouse Air Brake Technologies Corporation (WAB) : Free Stock Analysis Report
GATX Corporation (GATX) : Free Stock Analysis Report
