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ArcBest (ARCB) Gains But Lags Market: What You Should Know

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ArcBest (ARCB - Free Report) closed the most recent trading day at $70.88, moving +0.1% from the previous trading session. This change lagged the S&P 500's 0.43% gain on the day. Elsewhere, the Dow gained 0.25%, while the tech-heavy Nasdaq lost 0.09%.

Prior to today's trading, shares of the freight transportation and logistics company had lost 17.62% over the past month. This has lagged the Transportation sector's loss of 5.02% and the S&P 500's gain of 3.69% in that time.

Investors will be hoping for strength from ArcBest as it approaches its next earnings release, which is expected to be April 29, 2022. The company is expected to report EPS of $2.10, up 107.92% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.23 billion, up 48.04% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $10.70 per share and revenue of $5.13 billion, which would represent changes of +25.59% and +28.77%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for ArcBest. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.75% higher. ArcBest is holding a Zacks Rank of #3 (Hold) right now.

Looking at its valuation, ArcBest is holding a Forward P/E ratio of 6.62. This valuation marks a discount compared to its industry's average Forward P/E of 13.29.

We can also see that ARCB currently has a PEG ratio of 0.18. 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 0.88 at yesterday's closing price.

The Transportation - Truck industry is part of the Transportation sector. This group has a Zacks Industry Rank of 30, putting it in the top 12% 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.

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