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ARCB vs. SAIA: Which Stock Should Value Investors Buy Now?
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Investors interested in Transportation - Truck stocks are likely familiar with ArcBest (ARCB - Free Report) and Saia (SAIA - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. 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 #1 (Strong Buy), while Saia has a Zacks Rank of #2 (Buy) right now. This means that ARCB's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one factor that value investors are interested in.
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 12.10, while SAIA has a forward P/E of 30.56. We also note that ARCB has a PEG ratio of 0.52. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. SAIA currently has a PEG ratio of 1.02.
Another notable valuation metric for ARCB is its P/B ratio of 2.18. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, SAIA has a P/B of 6.03.
Based on these metrics and many more, ARCB holds a Value grade of B, while SAIA has a Value grade of D.
ARCB stands above SAIA thanks to its solid earnings outlook, and based on these valuation figures, we also feel that ARCB is the superior value option right now.
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ARCB vs. SAIA: Which Stock Should Value Investors Buy Now?
Investors interested in Transportation - Truck stocks are likely familiar with ArcBest (ARCB - Free Report) and Saia (SAIA - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. 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 #1 (Strong Buy), while Saia has a Zacks Rank of #2 (Buy) right now. This means that ARCB's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one factor that value investors are interested in.
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 12.10, while SAIA has a forward P/E of 30.56. We also note that ARCB has a PEG ratio of 0.52. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. SAIA currently has a PEG ratio of 1.02.
Another notable valuation metric for ARCB is its P/B ratio of 2.18. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, SAIA has a P/B of 6.03.
Based on these metrics and many more, ARCB holds a Value grade of B, while SAIA has a Value grade of D.
ARCB stands above SAIA thanks to its solid earnings outlook, and based on these valuation figures, we also feel that ARCB is the superior value option right now.