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

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ArcBest (ARCB - Free Report) closed at $71.74 in the latest trading session, marking a +1.33% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.16%. Meanwhile, the Dow lost 0.42%, and the Nasdaq, a tech-heavy index, added 0.17%.

Heading into today, shares of the freight transportation and logistics company had lost 16.8% over the past month, lagging the Transportation sector's loss of 8.1% and the S&P 500's loss of 6.79% in that time.

Wall Street will be looking for positivity from ArcBest as it approaches its next earnings report date. In that report, analysts expect ArcBest to post earnings of $3.88 per share. This would mark year-over-year growth of 96.95%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.36 billion, up 42.9% from the year-ago period.

ARCB's full-year Zacks Consensus Estimates are calling for earnings of $13.54 per share and revenue of $5.35 billion. These results would represent year-over-year changes of +58.92% and +34.32%, respectively.

Any recent changes to analyst estimates for ArcBest should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. The Zacks Consensus EPS estimate remained stagnant within the past month. ArcBest currently has a Zacks Rank of #2 (Buy).

Looking at its valuation, ArcBest is holding a Forward P/E ratio of 5.23. This represents a discount compared to its industry's average Forward P/E of 12.45.

Investors should also note that ARCB has a PEG ratio of 0.22 right now. 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. ARCB's industry had an average PEG ratio of 1.04 as of yesterday's close.

The Transportation - Truck industry is part of the Transportation sector. This group has a Zacks Industry Rank of 29, 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.

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


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