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4 Reasons to Watch This Appealing Trucking Stock

By Motley Fool Staff – Jan 4, 2022 at 4:03AM

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The trucking company that is quickly breaking into LTL is one to watch in 2022.

In this clip from Motley Fool Live, recorded on Dec. 14, Motley Fool contributor Lou Whiteman discusses which stock to keep an eye on heading into 2022.

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Lou Whiteman: One company in particular, I don't believe this is in the Fool universe, that I want you to keep an eye out with is something called Knight-Swift Transportation (KNX 6.82%), formed, as you might suspect, by the merger between Knight and Swift. This is the largest trucker but they aren't a very big LTL. They've been getting into that business via acquisitions. It's about 15% of projected 2022 revenue.

Jerry Moyes, who hockey fans know [and] probably Phoenix Coyote fans are not a big fan of, made his fortune at Swift. He's no longer affiliated with Knight-Swift, but he was the owner of Central Freight (NASDAQ: CENF). The vacuum that has created should allow Knight-Swift to accelerate their push in the LTL. There's suddenly a lot of drivers [and] a lot of heavy equipment. Given Moyes' connections, I can't help but wonder if Knight-Swift isn't the party that's out there talking to the drivers. This is a company that wanted to get into LTL and seize a real opportunity there. But the question is, how do you break in quickly? Suddenly, they have a path, and I just find that interesting. I watch that closely because this is a company that looked set up well heading into 2022 and, suddenly, if they want to, they could get aggressive with that push now thanks to this. Just a little bit from the world of trucking. Not a public company, but there's a lot of public companies that should be impacted by this.

This is yet another reason that I hope you've already done your holiday shopping, John, because the chaos of the supply chain just got a little more chaotic.

Lou Whiteman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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