Is Knight-Swift Transportation Holdings (KNX) Poised to Benefit from an Increase in Demand?

Aristotle Capital Boston, LLC, an investment advisor, released its “Small Cap Equity Fund” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. In the third quarter, the small-cap equities delivered strong results with the Russell 2000 Index reaching its first all-time high since November 2021. A favorable macroeconomic backdrop led the rally. In the quarter, the fund (Class I-2) delivered a return of 3.16% underperforming the 12.39% total return of the Russell 2000 Index. For more information on the fund’s best picks in 2025, please check its top five holdings.

In its third-quarter 2025 investor letter, Aristotle Small Cap Equity Fund highlighted stocks such as Knight-Swift Transportation Holdings Inc. (NYSE:KNX). Knight-Swift Transportation Holdings Inc. (NYSE:KNX) is a freight transportation services provider that operates through Truckload, Less-than-truckload (LTL), Logistics, and Intermodal segments. The one-month return of Knight-Swift Transportation Holdings Inc. (NYSE:KNX) was 19.09%, and its shares gained 1.25% of their value over the last 52 weeks. On December 18, 2025, Knight-Swift Transportation Holdings Inc. (NYSE:KNX) stock closed at $52.60 per share, with a market capitalization of $8.539 billion.

Aristotle Small Cap Equity Fund stated the following regarding Knight-Swift Transportation Holdings Inc. (NYSE:KNX) in its third quarter 2025 investor letter:

“Knight-Swift Transportation Holdings Inc. (NYSE:KNX) is a North American-based transportation (truckload, less-than-truckload, and intermodal) and logistics services provider. Knight-Swift is poised to benefit from an increase in freight transportation demand combined with subdued supply of transportation providers. A cyclical upturn in the freight cycle should drive increased revenues, earnings, and cash flow, providing the company options to reinvest in the business or return capital to shareholders through share buybacks and/or a dividend increase.”

Is Knight-Swift Transportation Holdings Inc. (KNX) the Best Freight Stock to Buy According to Hedge Funds?

Knight-Swift Transportation Holdings Inc. (NYSE:KNX) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 44 hedge fund portfolios held Knight-Swift Transportation Holdings Inc. (NYSE:KNX) at the end of the third quarter, up from 43 in the previous quarter. While we acknowledge the risk and potential of Knight-Swift Transportation Holdings Inc. (NYSE:KNX) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than KNIGHT-SWIFT TRANSPORTATION HOLDINGS INC. (NYSE:KNX) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered Knight-Swift Transportation Holdings Inc. (NYSE:KNX) and shared the list of stocks declined despite market optimism. In addition, please check out our hedge fund investor letters Q3 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.