Back to top

Image: Bigstock

ARCB vs. JBHT: Which Stock Should Value Investors Buy Now?

Read MoreHide Full Article

Investors with an interest in Transportation - Truck stocks have likely encountered both ArcBest (ARCB - Free Report) and JB Hunt (JBHT - 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.

There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

ArcBest has a Zacks Rank of #2 (Buy), while JB Hunt has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that ARCB likely has seen a stronger improvement to its earnings outlook than JBHT has recently. But this is only part of the picture for value investors.

Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their 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 17.61, while JBHT has a forward P/E of 27.34. We also note that ARCB has a PEG ratio of 1.15. 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. JBHT currently has a PEG ratio of 1.82.

Another notable valuation metric for ARCB is its P/B ratio of 2.51. 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. For comparison, JBHT has a P/B of 6.85.

These are just a few of the metrics contributing to ARCB's Value grade of B and JBHT's Value grade of C.

ARCB stands above JBHT thanks to its solid earnings outlook, and based on these valuation figures, we also feel that ARCB is the superior value option right now.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


J.B. Hunt Transport Services, Inc. (JBHT) - free report >>

ArcBest Corporation (ARCB) - free report >>

Published in