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ARCB vs. LSTR: Which Stock Is the Better Value Option?
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Investors interested in Transportation - Truck stocks are likely familiar with ArcBest (ARCB - Free Report) and Landstar System (LSTR - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Right now, both ArcBest and Landstar System are sporting a Zacks Rank of # 1 (Strong Buy). This means that both companies have witnessed positive earnings estimate revisions, so investors should feel comfortable knowing that both of these stocks have an improving earnings outlook. But this is just one factor that value investors are interested in.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
ARCB currently has a forward P/E ratio of 13.29, while LSTR has a forward P/E of 25.28. We also note that ARCB has a PEG ratio of 1.34. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. LSTR currently has a PEG ratio of 2.11.
Another notable valuation metric for ARCB is its P/B ratio of 0.98. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, LSTR has a P/B of 6.81.
These metrics, and several others, help ARCB earn a Value grade of A, while LSTR has been given a Value grade of C.
Both ARCB and LSTR are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that ARCB is the superior value option right now.
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ARCB vs. LSTR: Which Stock Is the Better Value Option?
Investors interested in Transportation - Truck stocks are likely familiar with ArcBest (ARCB - Free Report) and Landstar System (LSTR - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Right now, both ArcBest and Landstar System are sporting a Zacks Rank of # 1 (Strong Buy). This means that both companies have witnessed positive earnings estimate revisions, so investors should feel comfortable knowing that both of these stocks have an improving earnings outlook. But this is just one factor that value investors are interested in.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
ARCB currently has a forward P/E ratio of 13.29, while LSTR has a forward P/E of 25.28. We also note that ARCB has a PEG ratio of 1.34. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. LSTR currently has a PEG ratio of 2.11.
Another notable valuation metric for ARCB is its P/B ratio of 0.98. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, LSTR has a P/B of 6.81.
These metrics, and several others, help ARCB earn a Value grade of A, while LSTR has been given a Value grade of C.
Both ARCB and LSTR are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that ARCB is the superior value option right now.