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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company to watch right now is ArcBest (ARCB - Free Report) . ARCB is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 16.47, while its industry has an average P/E of 28.68. ARCB's Forward P/E has been as high as 19.34 and as low as 7.04, with a median of 12.85, all within the past year.
Investors will also notice that ARCB has a PEG ratio of 1.08. 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 industry has an average PEG of 2.46 right now. Over the last 12 months, ARCB's PEG has been as high as 2.19 and as low as 0.88, with a median of 1.26.
Another notable valuation metric for ARCB is its P/B ratio of 2.11. 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. This stock's P/B looks attractive against its industry's average P/B of 3.05. Over the past year, ARCB's P/B has been as high as 2.27 and as low as 0.54, with a median of 1.05.
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 1.49.
Finally, investors will want to recognize that ARCB has a P/CF ratio of 9.72. 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. Within the past 12 months, ARCB's P/CF has been as high as 10.43 and as low as 2.78, with a median of 5.76.
Value investors will likely look at more than just these metrics, but the above data helps show that ArcBest is likely undervalued currently. And when considering the strength of its earnings outlook, ARCB sticks out at as one of the market's strongest value stocks.
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Should Value Investors Buy ArcBest (ARCB) Stock?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company to watch right now is ArcBest (ARCB - Free Report) . ARCB is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 16.47, while its industry has an average P/E of 28.68. ARCB's Forward P/E has been as high as 19.34 and as low as 7.04, with a median of 12.85, all within the past year.
Investors will also notice that ARCB has a PEG ratio of 1.08. 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 industry has an average PEG of 2.46 right now. Over the last 12 months, ARCB's PEG has been as high as 2.19 and as low as 0.88, with a median of 1.26.
Another notable valuation metric for ARCB is its P/B ratio of 2.11. 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. This stock's P/B looks attractive against its industry's average P/B of 3.05. Over the past year, ARCB's P/B has been as high as 2.27 and as low as 0.54, with a median of 1.05.
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 1.49.
Finally, investors will want to recognize that ARCB has a P/CF ratio of 9.72. 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. Within the past 12 months, ARCB's P/CF has been as high as 10.43 and as low as 2.78, with a median of 5.76.
Value investors will likely look at more than just these metrics, but the above data helps show that ArcBest is likely undervalued currently. And when considering the strength of its earnings outlook, ARCB sticks out at as one of the market's strongest value stocks.