Back to top

Image: Bigstock

ArcBest (ARCB) Outpaces Stock Market Gains: What You Should Know

Read MoreHide Full Article

ArcBest (ARCB - Free Report) closed at $93.29 in the latest trading session, marking a +1.76% move from the prior day. The stock outpaced the S&P 500's daily gain of 1.17%. Meanwhile, the Dow gained 0.8%, and the Nasdaq, a tech-heavy index, added 0.31%.

Heading into today, shares of the freight transportation and logistics company had gained 5.45% over the past month, outpacing the Transportation sector's gain of 2.14% and the S&P 500's gain of 0.88% in that time.

Investors will be hoping for strength from ArcBest as it approaches its next earnings release. In that report, analysts expect ArcBest to post earnings of $2.13 per share. This would mark year-over-year growth of 110.89%. Our most recent consensus estimate is calling for quarterly revenue of $1.23 billion, up 48.04% from the year-ago period.

ARCB's full-year Zacks Consensus Estimates are calling for earnings of $10.62 per share and revenue of $5 billion. These results would represent year-over-year changes of +24.65% and +25.74%, respectively.

Investors might also notice recent changes to analyst estimates for ArcBest. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 1.85% higher. ArcBest currently has a Zacks Rank of #1 (Strong Buy).

Digging into valuation, ArcBest currently has a Forward P/E ratio of 8.63. This represents a discount compared to its industry's average Forward P/E of 15.23.

Investors should also note that ARCB has a PEG ratio of 0.23 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Transportation - Truck was holding an average PEG ratio of 1.1 at yesterday's closing price.

The Transportation - Truck industry is part of the Transportation sector. This group has a Zacks Industry Rank of 20, putting it in the top 8% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


In-Depth Zacks Research for the Tickers Above


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


ArcBest Corporation (ARCB) - free report >>

Published in