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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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest 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 #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 12.45. This compares to its industry's average Forward P/E of 29.82. ARCB's Forward P/E has been as high as 19.34 and as low as 6.45, with a median of 12.36, all within the past year.
We also note that ARCB holds a PEG ratio of 1.27. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. ARCB's PEG compares to its industry's average PEG of 2.56. Over the last 12 months, ARCB's PEG has been as high as 2.19 and as low as 0.92, with a median of 1.29.
Another notable valuation metric for ARCB is its P/B ratio of 1.51. 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. This stock's P/B looks solid versus its industry's average P/B of 3.05. Within the past 52 weeks, ARCB's P/B has been as high as 1.58 and as low as 0.54, with a median of 0.99.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. ARCB has a P/S ratio of 0.43. This compares to its industry's average P/S of 1.17.
Finally, investors will want to recognize that ARCB has a P/CF ratio of 7.99. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. ARCB's P/CF compares to its industry's average P/CF of 14.67. ARCB's P/CF has been as high as 8.37 and as low as 2.78, with a median of 5.43, all within the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that ArcBest is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, ARCB feels like a great value stock at the moment.
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Should Value Investors Buy ArcBest (ARCB) Stock?
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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest 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 #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 12.45. This compares to its industry's average Forward P/E of 29.82. ARCB's Forward P/E has been as high as 19.34 and as low as 6.45, with a median of 12.36, all within the past year.
We also note that ARCB holds a PEG ratio of 1.27. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. ARCB's PEG compares to its industry's average PEG of 2.56. Over the last 12 months, ARCB's PEG has been as high as 2.19 and as low as 0.92, with a median of 1.29.
Another notable valuation metric for ARCB is its P/B ratio of 1.51. 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. This stock's P/B looks solid versus its industry's average P/B of 3.05. Within the past 52 weeks, ARCB's P/B has been as high as 1.58 and as low as 0.54, with a median of 0.99.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. ARCB has a P/S ratio of 0.43. This compares to its industry's average P/S of 1.17.
Finally, investors will want to recognize that ARCB has a P/CF ratio of 7.99. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. ARCB's P/CF compares to its industry's average P/CF of 14.67. ARCB's P/CF has been as high as 8.37 and as low as 2.78, with a median of 5.43, all within the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that ArcBest is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, ARCB feels like a great value stock at the moment.