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Are Investors Undervaluing ArcBest (ARCB) Right Now?
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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
ArcBest (ARCB - Free Report) is a stock many investors are watching right now. ARCB is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 15.75, which compares to its industry's average of 29.04. Over the last 12 months, ARCB's Forward P/E has been as high as 19.34 and as low as 6.45, with a median of 12.65.
We also note that ARCB holds a PEG ratio of 1.12. 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. ARCB's PEG compares to its industry's average PEG of 2.49. Within the past year, ARCB's PEG has been as high as 2.19 and as low as 0.88, with a median of 1.27.
Investors should also recognize that ARCB has a P/B ratio of 1.98. The P/B ratio pits a stock's market value against 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 3.05. Within the past 52 weeks, ARCB's P/B has been as high as 2.07 and as low as 0.54, with a median of 1.04.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. ARCB has a P/S ratio of 0.57. This compares to its industry's average P/S of 1.51.
Finally, our model also underscores that ARCB has a P/CF ratio of 9.10. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. ARCB's P/CF compares to its industry's average P/CF of 14.67. Over the past year, ARCB's P/CF has been as high as 9.54 and as low as 2.78, with a median of 5.61.
These are only a few of the key metrics included in ArcBest's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, ARCB looks like an impressive value stock at the moment.
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Are Investors Undervaluing ArcBest (ARCB) Right Now?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
ArcBest (ARCB - Free Report) is a stock many investors are watching right now. ARCB is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 15.75, which compares to its industry's average of 29.04. Over the last 12 months, ARCB's Forward P/E has been as high as 19.34 and as low as 6.45, with a median of 12.65.
We also note that ARCB holds a PEG ratio of 1.12. 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. ARCB's PEG compares to its industry's average PEG of 2.49. Within the past year, ARCB's PEG has been as high as 2.19 and as low as 0.88, with a median of 1.27.
Investors should also recognize that ARCB has a P/B ratio of 1.98. The P/B ratio pits a stock's market value against 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 3.05. Within the past 52 weeks, ARCB's P/B has been as high as 2.07 and as low as 0.54, with a median of 1.04.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. ARCB has a P/S ratio of 0.57. This compares to its industry's average P/S of 1.51.
Finally, our model also underscores that ARCB has a P/CF ratio of 9.10. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. ARCB's P/CF compares to its industry's average P/CF of 14.67. Over the past year, ARCB's P/CF has been as high as 9.54 and as low as 2.78, with a median of 5.61.
These are only a few of the key metrics included in ArcBest's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, ARCB looks like an impressive value stock at the moment.