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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.

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.

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.

One stock to keep an eye on is ArcBest (ARCB - Free Report) . ARCB is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock has a Forward P/E ratio of 11.31. This compares to its industry's average Forward P/E of 21.59. Over the last 12 months, ARCB's Forward P/E has been as high as 20.26 and as low as 10.36, with a median of 13.39.

ARCB is also sporting a PEG ratio of 0.51. 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 industry has an average PEG of 1.28 right now. ARCB's PEG has been as high as 2.19 and as low as 0.49, with a median of 1.19, all within the past year.

Investors should also recognize that ARCB has a P/B ratio of 1.78. 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 3.87. Over the past 12 months, ARCB's P/B has been as high as 2.70 and as low as 0.84, with a median of 1.42.

Finally, our model also underscores that ARCB has a P/CF ratio of 7.56. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 15.11. Over the past 52 weeks, ARCB's P/CF has been as high as 11.47 and as low as 4.67, with a median of 7.04.

These are just a handful of the figures considered in ArcBest's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that ARCB is an impressive value stock right now.


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