Here's Why Investors Should Give Kirby Stock a Miss Now

Kirby KEX is facing significant freight market challenges. Escalating operating expenses are adversely affecting the company’s bottom line, making it an unattractive choice for investors’ portfolios.Let’s delve deeper.Kirby: Key Risks to WatchSouthward Earnings Estimate Revision:The Zacks Consensus Estimate for 2025 earnings has been revised 0.5% downward over the past 60 days. The unfavorable estimate revision indicates brokers’ lack of confidence in the stock.Dim Price Performance:  The company’s price trend reveals that its shares have dropped 18.2% over the past six months compared with the industry’s 20.5% decline.Image Source: Zacks Investment ResearchWeak Zacks Rank: Kirby currently carries a Zacks Rank #4 (Sell).Bearish Industry Rank: The industry to which Kirby belongs currently has a Zacks Industry Rank of 242 (out of 250). Such a favorable rank places it in the bottom 3% of Zacks Industries.Studies show that 50% of a stock price movement is directly related to the performance of the industry group it belongs to.A mediocre stock within a strong group is likely to outclass a robust stock in a weak industry. Hence, reckoning the industry’s performance becomes imperative.Headwinds: Kirby’s financial stability is challenged by elevated operating expenses and weak liquidity. Rising expenses impose a growing threat to the company’s bottom line. In the first nine months of 2024, costs and expenses increased 3.1% year over year, following a 6.3% rise in 2023 and a 3.5% increase in 2022. These increases were primarily driven by the higher cost of sales, operating expenses, and selling, general and administrative expenses.Supply-chain disruptions continue to dent shipping stocks like Kirby. Moreover, the company’sliquidity position is a concern. Cash and cash equivalents of $53.54 million at the end of the third quarter of 2024 were lower than the total debt of $978.59 million. This implies that the company does not have enough cash to meet its debt burden.Stocks to ConsiderInvestors interested in the Zacks Transportation sector may consider Alaska Air Group ALK and C.H. Robinson Worldwide CHRW.Alaska Air Group currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here. ALK has an expected earnings growth rate of 35.7% for the current year.The company has an impressive earnings surprise history. Its earnings outpaced the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average beat of 23.2%. ALK shares have surged 95.9% in the past year.C.H. Robinson currently carries a Zacks Rank #2 (Buy). CHRW has an expected earnings growth rate of 9.9% 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 beat of 10.3%. Shares of CHRW have risen 19.8% in the past year.Free Today: Profiting from The Future’s Brightest Energy SourceThe demand for electricity is growing exponentially. At the same time, we’re working to reduce our dependence on fossil fuels like oil and natural gas. Nuclear energy is an ideal replacement.Leaders from the US and 21 other countries recently committed to TRIPLING the world’s nuclear energy capacities. This aggressive transition could mean tremendous profits for nuclear-related stocks – and investors who get in on the action early enough.Our urgent report, Atomic Opportunity: Nuclear Energy's Comeback, explores the key players and technologies driving this opportunity, including 3 standout stocks poised to benefit the most.Download Atomic Opportunity: Nuclear Energy's Comeback free today.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report C.H. Robinson Worldwide, Inc. (CHRW): Free Stock Analysis Report Alaska Air Group, Inc. (ALK): Free Stock Analysis Report Kirby Corporation (KEX): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks