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Are Investors Undervaluing ArcBest (ARCB) Right Now?
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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company value investors might notice is ArcBest (ARCB - Free Report) . ARCB is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 10.80, which compares to its industry's average of 14.62. Over the past year, ARCB's Forward P/E has been as high as 28.44 and as low as 10.08, with a median of 14.77.
Investors should also recognize that ARCB has a P/B ratio of 1.45. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 2.30. ARCB's P/B has been as high as 1.95 and as low as 1.21, with a median of 1.51, over the past year.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. ARCB has a P/S ratio of 0.34. This compares to its industry's average P/S of 0.95.
Finally, investors should note that ARCB has a P/CF ratio of 5.44. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. ARCB's P/CF compares to its industry's average P/CF of 8.12. ARCB's P/CF has been as high as 8.06 and as low as 4.60, with a median of 6.67, all within the past year.
These are just a handful of the figures considered in ArcBest's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that ARCB is an impressive value stock right now.
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Are Investors Undervaluing ArcBest (ARCB) Right Now?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company value investors might notice is ArcBest (ARCB - Free Report) . ARCB is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 10.80, which compares to its industry's average of 14.62. Over the past year, ARCB's Forward P/E has been as high as 28.44 and as low as 10.08, with a median of 14.77.
Investors should also recognize that ARCB has a P/B ratio of 1.45. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 2.30. ARCB's P/B has been as high as 1.95 and as low as 1.21, with a median of 1.51, over the past year.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. ARCB has a P/S ratio of 0.34. This compares to its industry's average P/S of 0.95.
Finally, investors should note that ARCB has a P/CF ratio of 5.44. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. ARCB's P/CF compares to its industry's average P/CF of 8.12. ARCB's P/CF has been as high as 8.06 and as low as 4.60, with a median of 6.67, all within the past year.
These are just a handful of the figures considered in ArcBest's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that ARCB is an impressive value stock right now.