KNX - Knight-Swift Transportation Caught Between Demand And Supply Cyclical Bulls And Bears

• Knight-Swift beat second quarter expectations, but it was the Logistics and Intermodal businesses that drove the beat, as Trucking came up a bit short as capacity constraints outweighed strong demand.
• Driver shortages remain a key challenging for trucking companies, but may also end up pushing the cyclical peak out a bit.
• Knight-Swift has the largest and most profitable truckload fleet, and while there are still growth opportunities there, management is deploying capital to diversify its growth drivers.
• Knight-Swift shares don't look expensive assuming trucking remains strong through 2022, but buying into a cyclical downturn can be a brutal experience.

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