Knight-Swift's stock price triggers Bollinger Bands narrowing, KDJ death cross formation.

Knight-Swift's 15-minute chart has exhibited a narrowing of Bollinger Bands, coupled with a KDJ Death Cross at 09/10/2025 15:15. This suggests a decrease in the magnitude of stock price fluctuations, as well as a shift in momentum towards the downside, potentially leading to further decreases in the stock price.

Knight-Swift Transportation (KSW), Schneider National (SNDA), and J.B. Hunt Transport Services (JBH) have been downgraded to Neutral by UBS, reflecting concerns about muted truckload demand and a potential delay in pricing recovery.

UBS analysts cited weak truck pricing and a gradual decline in market capacity as primary factors driving the downgrade. The bank expects contract rates to rise by just 2% in 2026, pushing a stronger 7% increase to 2027. This forecast leaves UBS's 2026 earnings estimates for the three carriers about 10% below Wall Street consensus.

The downgrade comes as Knight-Swift's 15-minute chart shows a narrowing of Bollinger Bands and a KDJ Death Cross at 09/10/2025 15:15, indicating a decrease in stock price fluctuations and a shift towards the downside. This technical analysis suggests potential further decreases in the stock price.

UBS also downplayed the likelihood of Federal Reserve rate cuts spurring a near-term freight recovery, noting that lower borrowing costs may not significantly reduce long-term yields if inflation and growth expectations remain elevated.

The firm rolled forward its valuation framework to 2027 earnings, applying multiples of 15 times for Knight-Swift and Schneider, and 20 times for J.B. Hunt. These levels reflect that 2027 will be three years past the 2024 trough in truckload rates.

With limited upside of 5% to 15% over the next year, UBS no longer sees enough justification for Buy ratings on the three stocks. The analysts concluded that the current market conditions do not provide sufficient support for a positive outlook on these companies' stock performance.

Investors should closely monitor the evolving market conditions and consider the potential impacts on these companies' earnings and stock prices. As always, it is crucial to stay informed and make decisions based on up-to-date financial information.

Disclaimer: The data contained in this article is not necessarily real-time nor accurate. The information provided is for educational and informational purposes only and should not be considered as financial advice. Always consult with a financial advisor before making investment decisions.

References:
UBS downgrades Knight-Swift, Schneider and J.B. Hunt on weak truck demand^[1] Investing.com -- UBS downgrades Knight-Swift, Schneider, and J.B. Hunt on weak truck demand