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ARCB or ODFL: Which Is the Better Value Stock Right Now?

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Investors looking for stocks in the Transportation - Truck sector might want to consider either ArcBest (ARCB - Free Report) or Old Dominion Freight Line (ODFL - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.

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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

ArcBest and Old Dominion Freight Line are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. Investors should feel comfortable knowing that ARCB likely has seen a stronger improvement to its earnings outlook than ODFL has recently. But this is just one piece of the puzzle for value investors.

Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its 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 14.15, while ODFL has a forward P/E of 29.74. We also note that ARCB has a PEG ratio of 1. 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. ODFL currently has a PEG ratio of 1.95.

Another notable valuation metric for ARCB is its P/B ratio of 1.75. 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, ODFL has a P/B of 7.49.

These metrics, and several others, help ARCB earn a Value grade of A, while ODFL has been given a Value grade of C.

ARCB has seen stronger estimate revision activity and sports more attractive valuation metrics than ODFL, so it seems like value investors will conclude that ARCB is the superior option right now.


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Old Dominion Freight Line, Inc. (ODFL) - free report >>

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