We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
ARCB vs. HTLD: Which Stock Is the Better Value Option?
Read MoreHide Full Article
Investors interested in stocks from the Transportation - Truck sector have probably already heard of ArcBest (ARCB - Free Report) and Heartland Express (HTLD - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Right now, ArcBest is sporting a Zacks Rank of #1 (Strong Buy), while Heartland Express has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that ARCB likely has seen a stronger improvement to its earnings outlook than HTLD has recently. But this is just one piece of the puzzle for value investors.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
ARCB currently has a forward P/E ratio of 10.62, while HTLD has a forward P/E of 24.30. We also note that ARCB has a PEG ratio of 0.25. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. HTLD currently has a PEG ratio of 1.62.
Another notable valuation metric for ARCB is its P/B ratio of 1.43. 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. For comparison, HTLD has a P/B of 2.80.
These metrics, and several others, help ARCB earn a Value grade of A, while HTLD has been given a Value grade of C.
ARCB sticks out from HTLD in both our Zacks Rank and Style Scores models, so value investors will likely feel that ARCB is the better option right now.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
ARCB vs. HTLD: Which Stock Is the Better Value Option?
Investors interested in stocks from the Transportation - Truck sector have probably already heard of ArcBest (ARCB - Free Report) and Heartland Express (HTLD - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Right now, ArcBest is sporting a Zacks Rank of #1 (Strong Buy), while Heartland Express has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that ARCB likely has seen a stronger improvement to its earnings outlook than HTLD has recently. But this is just one piece of the puzzle for value investors.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
ARCB currently has a forward P/E ratio of 10.62, while HTLD has a forward P/E of 24.30. We also note that ARCB has a PEG ratio of 0.25. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. HTLD currently has a PEG ratio of 1.62.
Another notable valuation metric for ARCB is its P/B ratio of 1.43. 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. For comparison, HTLD has a P/B of 2.80.
These metrics, and several others, help ARCB earn a Value grade of A, while HTLD has been given a Value grade of C.
ARCB sticks out from HTLD in both our Zacks Rank and Style Scores models, so value investors will likely feel that ARCB is the better option right now.