Back to top

Image: Bigstock

ARCB vs. JBHT: Which Stock Is the Better Value Option?

Read MoreHide Full Article

Investors looking for stocks in the Transportation - Truck sector might want to consider either ArcBest (ARCB - Free Report) or JB Hunt (JBHT - 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Currently, ArcBest has a Zacks Rank of #1 (Strong Buy), while JB Hunt has a Zacks Rank of #2 (Buy). Investors should feel comfortable knowing that ARCB likely has seen a stronger improvement to its earnings outlook than JBHT has recently. But this is just one piece of the puzzle for value investors.

Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels.

The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.

ARCB currently has a forward P/E ratio of 14.86, while JBHT has a forward P/E of 29.40. We also note that ARCB has a PEG ratio of 0.33. 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. JBHT currently has a PEG ratio of 1.96.

Another notable valuation metric for ARCB is its P/B ratio of 3.03. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, JBHT has a P/B of 7.24.

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

ARCB is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that ARCB is likely 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